I wanted to wirte this post regarding a Quebec think tank view on exporting Canadian fresh water to the rest of the world (meaning the USA), and I just wish to clarify the under-valuation of Water as a commodity. Perhaps you have heard of water being "the new oil" and the speculation of being priced higher in 10 years in equivalent barrel volumes of oil. Perhaps this may be or perhaps not. Let's look at this from a different perspective, rather not as a commodity speculator, but as a consumer. In Canada, a liter of regular gas averages around $1.20; where as a 500 ml bottle of water at individual retail prices can find you anywhere between $1-3 depending on brand and purchase location. That is a massive difference between the two commodities and there is one major and obvious difference between them; a human cannot physically live without water. Retailing the precious, life-giving commodity at those prices is a tremendous opportunity and the price can only go up from here.
Another point is with recent developments by the Japanese automakers regarding hydrogen fuel-cell such as Honda's FCX Clarity, the new use for water will drive prices up further.
I fear i am rambling on now, so I will leave you with my favorite water ETF's:
- PowerShares Water Resources (ETF) (Public, AMEX:PHO)
- Claymore S&P Global Water Index ETF (Public, AMEX:CGW)
3 comments:
singapore is gonna become the silicone valley for water in the next 20 years.
I like your article and it really gives an outstanding idea that is very helpful for all the people on web.
Retailing the precious, life-giving commodity at those prices is a tremendous opportunity and the price can only go up from here.
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