By 2030, drinking water is set to become the most prized resource in most parts of the world, making investing in water a very wise investment decision. Already, according to reports, by 2030, four large countries—China, India, Brazil and South Africa—will need 42% of the world’s stock of freshwater. Already, these countries face huge water shortages.
According to research reports by the United Nations, by 2030, roughly half the population of the world will live in those areas where water is extremely scarce. Already, this shortage is a living reality in more than 80 countries.
The world water industry: The international water industry is currently pegged at $460 billion. As the world population continues to grow, and there is an increase in pollution increases, supplies are sure to become scarcer and there will be severe pressure on world water levels, water will become a precious commodity. So, investing in water stocks is sure to reap huge dividends in the years to come.
Besides, the demand for water even today far outstrips supply, making this area a very profitable sector to get into. Anyone eying this market knows that the future only means that this gap between demand and supply will only widen. And, if you consider that the earth is growing at the rate of 1.5% – 2%, the world’s water usage is growing much faster than that at 2.5% – 3%.
Add to this other uses of water such as domestic use, watering crops, bathing and drinking water, and you realize that an average person needs not less than 232 gallons per day. Most of that comes from the agricultural domain, in fact about 70% of all water needs.
Investing in water as a segment comprises four main areas—water and food, water distribution, water management and advanced water treatment.
Ways of investing in water: Here are some ways of investing in water so that there’s enough of it for the future:
Privatize water: People think water will be privatized in the years to come. A step in that direction is the emergence of bottled water in the beverages industry and private companies taking over the duties of drinking water supply of several cities and countries.
Beverages industry: One easy way to enter the water investment area is to invest in those companies which control water management facilities and aquifers. Examples of such companies are Pepsi and Coca-Cola. These companies are well-entrenched in the water industry and are in a position to invest heavily in water privatization.
Retrieving water from air: There are some machines that actually get back water from the atmosphere. A good move would be to invest in companies dealing in this area.
Municipalities: By investing in municipalities with privatized water systems, you could soon be in clover. Once water is privatized, the prices will shoot up and those municipalities that you have invested in will supply water to several cities and states. So, your municipal bond will be more valuable than you ever imagined, plus they will also be stable, safe and profitable. This makes investing in water highly profitable to you.
Author Resource:
Investorideas.com is the author of this article on Gold stocks.
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