Will a Water Shortage Create the Next Price Hike for Consumers?
Market Wire, June, 2008
Water should be one of the most lucrative commodities of the 21st Century, creating price hikes that impact consumers and investors alike, according to a new report by Weiss Research commodities analyst Sean Brodrick.
In Cloud 9 Cash Report , Brodrick provides an insightful analysis of water as an investment vehicle and strong data supporting further pressure on the price of the natural resource , including:
* Americans spent $15 billion on bottled water in 2007.
* By 2020, 45% of U.S. water utilities will need repair.
* A United Nations report that the Himalayan glaciers that are sources to Asia's biggest rivers -- the Ganges, Indus, Brahmaputra, Yangtze, Mekong, Salween and Yellow Rivers -- concluded that they could disappear by 2035 as temperatures rise. It is estimated that 2.4 billion people depend on that water.
* Less than 15% of the Chinese population has access to clean drinking water. China's government will spend $128 billion on water infrastructure in the next five years.
"Water is a valuable natural resource and the demand for it is not elastic -- as prices rise, consumption does not decrease," said Brodrick. "Consumers will have to adjust to price hikes for water as it becomes less available. Investors should see steady price acceleration as demand continues to surge around the world."
Brodrick's report, available for immediate download , also gives ideas to investors who are considering purchasing water ETFs or stocks in companies that make bottled water.
Weiss Research, Inc. is an independent research firm in Jupiter, Florida. Founded in 1971, Weiss Research is dedicated to providing information and tools to help investors make sounder financial decisions and offers its insights in MoneyandMarkets.com.
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