Jump to content
Now you can advertise your business on Top Gold Forum.
Sign in to follow this  
mang_ncep

Water will be a more valuable commodity than oil

Recommended Posts

Water will become a traded commodity, like oil, gold and silver, it’s just a matter of time.

70% of earth may be covered by it, but less than 1% of it is readily available freshwater, which makes it a scarce resource.

It’s value to human life is unquestioned – oil, gold and silver we can live without – we die without water.

The problem for Wall Street and the major international markets is that in addition to overcoming the difficulty of attaching a price to something so essential to our lives, for it to become a traded commodity it also needs to fulfil three criteria: standardised/interchangeable, tradeable and deliverable.

WATER IS MORE EXPENSIVE THAN OIL TO TRANSPORT

Water is always made up of H₂O, but the levels of minerals and metals it also contains depends on the location it is drawn from thus making it difficult to standardise.

Its tradability is dependent on location. There are parts of the world have so much of it their biggest problem is flooding. In others it’s a scarcity and they suffer droughts.

Water is also costly to transport – it costs more to pipe water than it does to pipe oil.

So how can it be said with any certainty that it will become a tradable commodity?

Jean-Louis Chaussade, the chief executive of French utility Suez, recently told the Financial Times that he believed water will become more valuable than oil because of the increased demand from people, industry and agriculture.

DEMAND FOR WATER IS INCREASING BEYOND SUPPLY CAPABILITIES

The United Nations has projected that by 2035, 40% of the world’s population will live with water scarcity. This puts companies in competition with people and farming for supplies.

Local governments around the world are refusing to allow industries to take water from underground to operate which is forcing them to turn to desalination plants or waste water recycling to meet needs.

Instinct tells us that it’s correct to give priority to people and agriculture to the supply of water over industry. But it clouds the issue of government’s inability to manage the provision of water efficiently, and how lack of investment in state-run infrastructure has led to the supply problem and why local government now create barriers for its use by industry.

Converting water into a tradable commodity will result in it being managed more efficiently as a resource. The misuse and over exploitation of the past would be prevented by assigning it a value.

This thinking prompted Fortune magazine to describe water as the commodity that will determine the wealth of nations in the 21st century, in the same way that oil did in the 20th century.

The counter-argument to treating water as a commodity is that it’s a basic human right, and the fear that the world’s poor stand to become worse off as social equality will traded in for economic efficiency.

Trading water rights is already happening in Australia, and to a lesser extent in the western US. The more this happens, the more it becomes accepted and eventually becomes part of the mainstream.

GOVERNMENTS WILL STRUGGLE TO MEET FUTURE DEMAND

The need for fresh, clean water will only increase – by 2050, 55% more water will be needed than supplied today –  and government are unlikely to be able to meet that demand because of the massive investment needed to improve supply management.

Markets can play an important role in providing future water security by helping to fund improvement to water infrastructure. The creation of a futures market to trade water would help to create a baseline pricing mechanism against which regional water tariffs could be fairly set.

There is another fear that water scarcity could eventually see water-rich countries (Brazil, Russia, the US and Canada) form into a group similar to the Organisation of Petroleum Exporting Countries (Opec) despite the current transportation issues inherent in moving water.  But if serious investment isn’t made into infrastructure – $22 trillion over the next 20 years to maintain current supply levels according to some estimates – then the problem of water shortage will become even more acute.

 

More news here at FXB Trading

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Popular Contributors

  • Similar Content

    • By fxfarmerashik
      Hello everyone, many of you may not know the term "no deposit bonus" on the foreign exchange market. So today, I will discuss some important facts of the no deposit Forex bonus.
      What is a no deposit bonus?
      No Deposit Forex bonuses are promotional bonuses that are often used by regulated Forex brokers to attract new customers who want to test their services. This type of bonus gives you a great opportunity to try out broker systems and services without spending a dime.
      The Forex No Deposit Bonus account is the same as a regular account because you can enjoy the same experience with a regular trading account. In addition, the implementation of the no deposit Forex bonus is the same as on a direct Forex account.
      Thus, no deposit Forex bonus is a safe way to start Forex trading. Forex traders generally offer a Forex deposit bonus of between $ 5 and $ 100. When you visit this online broker website, you can find promotion of a deposit bonus deposited and updated regularly.
      What you need to know about no deposit bonuses Forex
      If you are new to the world of Forex trading, then a no deposit bonus on Forex is a great opportunity to use it. As we mentioned earlier, some brokers regularly provide this special bonus.
      Thanks to the agreement on no-deposit Forex bonuses, a real Forex trading account is assigned to allow you to start trading in the money market without jeopardizing your own money. Of course, no broker will give you free money. There are therefore a number of conditions for all No Deposit Bonus promotions that you must carefully follow in order to withdraw the profit or bonus you make when trading.
      Unless the minimum trading volume is reached, the trader can not withdraw the Forex deposit without investing. This is one of the most important conditions that most brokers pursue.
      Traders can not simply withdraw bonuses without fulfilling certain conditions, such as volume and trading times. There can also be a maximum amount of Forex profit that traders can withdraw if they have not funded their own account.
      Traders need to understand their Forex trading experience at the micro level without the Forex Deposit Bonus. This may actually be different from Forex trading on larger and larger portfolios as the risk involved is greater.
      Good trading account management without Bonus Bonus The bonus certainly requires several strategies.
      The Forex market is a globally decentralized market for Forex trading. The main players in the Forex market are probably the main multinational banking institutions.
      Banking institutions act as anchors to trade regularly with different types of traders. Compare with the stock market where there is a daily turnover and then it's easy to see why the Forex market is the most important financial market in the world.
      Basically, Forex is considered an act of buying a currency when you sell another currency at the same time, mainly related to speculation or rumors. The value of currencies continues to rise, but it can also depreciate (decline) because of many variables involving the economy and geopolitics.
      The general objective of trading the deposit bonus is to make a profit while observing these variations. Traders must regularly guess the evolution of Forex exchange rates in the near future.
      However, in some cases, trading volumes are below standard values, which may help to broaden the market distribution.
      Unlike most financial markets, the true free market of Forex has no place for business or perhaps the main market, because it is traded throughout the day thanks to the global participation of companies, companies banking institutions and individuals.
      In addition, there are profitable offers for potential customers to engage traders to benefit their organization. That's why the Forex deposit bonus offer is becoming more and more popular.
      To get a Forex no deposit bonus, simply create a Forex account and provide personal information. This usually includes downloading your address and some other relevant details.
      Once approved, they will deposit money into your account, which will serve as an initial bonus for your new trading account. The level of this agreement is for the most part quite interesting.
      The no deposit Forex bonus is highly recommended because you can start trading once you join your broker team and evaluate the system as you learn everything.
      Some brokers provide this agreement primarily to promote their business and to get as many customers as possible. A quick Google search can give you a list of no deposit Forex bonuses.
      The next step is to read the terms and conditions, as not all brokerage companies will allow people from different countries to join their team.
      So here are some important facts about the no deposit bonus on Forex. And if you agree with my opinions, then please let me know.
    • By Rafiul
      Losing is as much part of trading as winning. After all, forex trading is usually a zero-sum game. It is only a matter of time before someone is on the other side of your trade and before taking the wrong side.
       
      However, it is a normal part of the overall trading process, but there is something lost that many traders have - newcomers and problems with professionals.
       
      Forex extinction believes that the main reason behind the difficulty of dealing with the losses is the lack of understanding of nature and the effect of trading psychology rather than the actual mental problems.
       
      By knowing these 4 stages, hopefully, you will be more able to manage the losses that come with trading.
       
      Stage 1: Deny
      The first stage of the loss enables you to deal with losing trade. At this stage, you deny yourself and others that your trading concept was wrong and the loss was not your fault. There is nothing inconvenient this way, especially if you are new. This is a way to reduce your ego, survive loss and move on.
       
      Stage 2: Logic
      After the denial phase, you move to rationalize your trade setup. This is a point where you point out the exact idea of your trade and you do not even think of what you did wrong.
      You quote your trading plan, profit target, stop loss and the accuracy of the entry points, but completely ignored that you actually lose the trade and made a mistake.
       
      Stage 3: Depression
      At this point, you have already looked at the potential external cause for your damages. Then you go inward and consider the idea that the loss is entirely due to its own work.
      Even though it is reasonable to take responsibility for your losses, it may be harmful to your own forex carrier if you suspect yourself consistently.
      You can ask yourself, "Is forex trading really for me?" And "Why go on at all?" If you do not find enough reason to push, you can withdraw yourself from your trade. Premium Forex course of ForexTradingForYou is the Perfect solutions for the forex traders. You can get the latest technical analysis and best trading signal hereabouts to improve yourself.
       
      Stage 4: Acceptability
      At this stage, you have started to realize that it is unhealthy to blame yourself for what's wrong. Although you acknowledge that the loss was partly your fault, you are also aware that the Forex market is a wildly unhealthy animal and there are many reasons for the market beyond your control.
      Make me clear that the recognition does not seem just right about the loss. Verily, acceptance is to leverage reality with ourselves and assume that the damage can not be undone.
      When you reach this stage, you acknowledge that you have made some mistakes in your part, but there are some things that you can not control.
       
      At the end of the day, it is important to remind yourself that you can not completely reverse what you've lost, but you can make it for it. You can determine how to manage your trading strategy, improve risk management, or manage your losses better. Instead of simply denying the loss, you have to go ahead, adjust and increase.
    • By Giogoo
      Get $25 BTC Sign Up Bonus + $25 Per Referral
      Voyager is a new cryptocurrency trading platform that aims to offer commission-free trading They are offering $25 in Bitcoin credit if you sign up early and a further $25 for each friend that uses your link.
      The Offer :
      Sign up and you get 25$ in bitcoin free
      For every friend that you get to create a Voyager account with your custom link, you'll receive an additional $25 BTC credit.
      https://tinyurl.com/ybv66l79
      Rules:
      Voyager’s promotional and referral programs are currently only available to US residents, if you are not you can use any VPN(server US) when you sign up
      They're planning an international launch early 02/ 2019.
      All BTC credit is issued in pending status and requires the opening of a valid Voyager account to be claimed.
      Stay tuned for news about when Voyager launches in your area.
      Limit of 100 accepted invites
      Rewards that are unclaimed within one year of being issued will expire. enjoy
      https://tinyurl.com/ybv66l79
    • By Rafiul
      Technical parameters| (22nd-26th) October 2018
      Possible entry point with critical support and resistance level. But when you trade at this level make sure that you are using price action confirmation signal. We have prepared these key support and resistance level based on the Fibonacci retracement levels, 100&200 SMA, key swings point and chart patterns formed in the higher time frame. Focus on AUDUSD technical analysis.
       
       
      EURUSD
      Look for buying opportunity near the critical support
      First critical Resistance: Click here
      Second critical Resistance: 1.16590
      First critical Support: Click here
      Second Critical Support:  1.13031
      Overall Sentiment: Slightly Bearish
       
      For GBPUSD, AUDUSD, USDCAD and USDJPY analysis
       
      visit www.forextradingforyou.com
       All the technical parameters are applicable from  22nd October to 26th October 2018. The overall sentiment indicates the prevailing trend of the market. We highly recommend you to trade in favor of the market sentiment (overall sentiment) to reduce the risk of exposure in trading. Trade the critical support and resistance level with price action confirmation signal. If you want to get the technical chart analysis along with logical explanations, feel free to contact us.
      We provide high-quality Forex trading signals, trading consultancy, and price action trading course. Please feel free to contact us for any query. A simple 5-minute conversation with our expert will change your trading career.
      We publish regular technical analysis on all the major pairs in every Monday. Please visit our site www.forextradingforyou.com to get details about our technical analysis. To get details about our video technical analysis along with live trade setup to visit YouTube Channel. Please subscribe our channel to stay updated with every single technical analysis. 
       

       
      Source: www.forextradingforyou.com
  • Topics

×
×
  • Create New...