• Best investment in 2021 for small wallet
No Result
View All Result
  • Login
  • Register
NEWSLETTER
Clubets
Join the club
  • News
  • Personal Finances
  • How I Made
  • Cryptocurrency
  • Stock Exchange
  • Venture Capital
  • Real estate
Clubets
No Result
View All Result

Investing in natural resources for high profitability

There are strong reasons to invest in natural resources. Whether the raw materials are wood, gold or oil, they are the source of the production of any good.

15 August 2021
in Personal Finances
Reading Time: 4 mins read
Investing in natural resources for high profitability
170
SHARES
897
VIEWS
Share on FacebookSend to a friend on Whatsapp

The screen on which you are viewing this article is a collection of materials derived from raw materials. The world, because of its growth, requires more and more natural resources. We will therefore look in this article at why investing in commodities can be integrated into your portfolio and with which financial products you can invest in commodities.

Investing in natural resources means investing in minerals, oil, natural gas, water, precious metals. Basically, if it is cut or collected from above or below the earth, it is a natural resource on which to invest. Hydrocarbons, water, wood, minerals of all kinds… Their extraction allows us to foresee attractive financial perspectives.

We are going to zoom in on four major families of resources that have good potential for value creation: Water, forest, oil and gold.

Invest in water

Water is at the crossroads of two dynamics: a world population that will reach nearly 10 billion inhabitants by 2050, according to the UN, and accelerated urbanization. In this context, what will pay off is the distribution and modernization of urban networks, rather than the fact of drawing water. The water business is worth €600 billion a year,” says Hervé Thiard, managing director of the investment fund Pictet AM. And the market is growing by 5% per year. Shares of companies in the sector appear as long-term assets in a portfolio. “The advantage is that it is possible to invest in a wide variety of companies: pumping, filtering, dams, purification, etc. It is very diversifying,” says Bertrand Lecourt, manager of Fidelity’s Water and Waste fund. As a result, volatility is lower for this type of asset than for other natural resources.

Investing in forest

There are two ways to invest in the forest: buy a plot of land or subscribe to shares in forestry groups (GF). In the second case, you benefit from an advantageous tax reduction of 18% on the amount invested, up to a limit of €50,000 for a single person (double for a couple), i.e. up to €9,000 in one go (subject to the global ceiling of tax niches at €10,000 per year).

The problem
Like any atypical investment, you may be dealing with a fictitious investment or a malicious intermediary, especially since this is a very specific market. The other problem is the return: is it an investment that is worth it, apart from its tax appeal? The wood, all species taken together, brings back between 2 and 3 % per annum, informs Stéphane van Huffel, cofounder of Net-investissement.

Investing in Gold

Many individuals buy gold bars or coins. However, this anti-crash solution par excellence does not generate any dividends. And storage costs are involved. If you are looking for a combination of yield and value, it is better to choose shares in mining companies. In recent years, the majors in the sector have succeeded in reducing their costs and thus improving their profitability. If the price of gold rises a little, these stocks could become investments to be followed very seriously. Even if we can only advise you to avoid mines in countries with high geopolitical risks. It is also tempting to invest in other minerals. In particular copper, which is largely linked to world growth. This metal, like other minerals (uranium, cobalt, diamonds), is also the subject of speculation that escapes private individuals. Their fate depends to a large extent on the Chinese economy. “If China coughs, metals catch a cold,” says Benjamin Louvet, commodity manager at OFI Asset Management. So let’s stay focused on gold.

Investing in Oil

Oil was formed in the earth’s subsurface several million years ago. On a human scale, oil is therefore a finite resource. Sooner or later, there will be no more oil on Earth. It remains to be seen when.

We can already observe that the discovery of new conventional crude oil deposits has been in free fall since the early 1970s. The vast majority of the world’s reserves are therefore already known and future discoveries will not change the situation. However, it is today’s discoveries that will ensure tomorrow’s production. In the early days of the oil industry, oil was pumped from very generous and shallow fields, so to put it graphically, all you had to do was “bend down to pick up the oil”. But the late 2000s marked a turning point in the industry’s history: the era of cheap oil is behind us. To continue to meet growing demand, it is now necessary to turn to unconventional oils.

Oil demand to grow in the medium term
There are countless uses for oil. Black gold fuels the vast majority of the 1.4 billion cars on the road, but it also produces the fertilizers and pesticides needed for modern agriculture, industrial lubricants, asphalt, plastics, nylon, adessives, and a host of everyday products.

There are many ways to invest in petroleum. The first is to invest in companies that have made it their industry (Total, GMO etc.). These companies pay dividends and see their shares increase every year. The second option is to buy turbos on oil. A turbo is a derivative product whose price depends on an underlying asset, in our case, oil. They are a little more difficult to understand than CFDs. The third way to invest in oil is to buy ETFs (Exchange Traded Funds). These are investment funds listed on the stock exchange whose objective is to replicate a stock index. Just as there are ETFs that replicate the CAC 40, there are ETFs that replicate the Brent or WTI oil stock market price. These are also called ETCs (Exchanged Traded Commodity).

Previous Post

How I bought a Tesla with my crypto earnings in 8 months

Next Post

Investing money in Space

Related Posts

The best atypical investments (jewelry, land, stones, patents)

The best atypical investments (jewelry, land, stones, patents)

by clubets
30 August 2021

Are you planning to invest your money in 2021 while having fun? Atypical investments seem by far the most interesting...

Investing in cannabis in 2021

Investing in cannabis in 2021

by clubets
25 August 2021

Cannabis is one of the last industries with the highest growth and with the most opportunities. Canada legalised cannabis in...

Investing money in Space

Investing money in Space

by clubets
20 August 2021

La Financière de l'Echiquier has just launched Echiquier Space, Europe's first thematic fund for the space sector. As the space...

How to invest in creators & influencers (and make a lot of money)?

How to invest in creators & influencers (and make a lot of money)?

by clubets
30 July 2021

For years, the influencer and creative sector has suffered from limited investment from traditional venture capital firms. But in the...

Recommended

Cryptocurrency forecast in 2021: Explanation of an inevitable rise

Cryptocurrency forecast in 2021: Explanation of an inevitable rise

2 years ago
Stop Elon: The cryptocurrency that wants to destroy the Elon Musk empire

Stop Elon: The cryptocurrency that wants to destroy the Elon Musk empire

2 years ago

Popular News

  • Why and how Elon Musk became the father of the Coin Doge

    Why and how Elon Musk became the father of the Coin Doge

    221 shares
    Share 88 Tweet 55
  • What is a ShitCoin and How to make money with it

    206 shares
    Share 82 Tweet 52
  • A virtual house sells for over 400 000€ (NFT)

    196 shares
    Share 78 Tweet 49
  • Stop Elon: The cryptocurrency that wants to destroy the Elon Musk empire

    190 shares
    Share 76 Tweet 48
  • How i made 10000$ per month by selling services that I outsource (Dropservice)

    190 shares
    Share 76 Tweet 48
  • Category
  • Personal Finances
  • Stock Exchange
  • Venture Capital
  • Cryptocurrency
  • Real estate
Anyone can become investor contact@clubets.com

©2020 Clubets, All rights reserved. Legal Notices

No Result
View All Result
  • News
  • Personal Finances
  • How I Made
  • Cryptocurrency
  • Stock Exchange
  • Venture Capital
  • Real estate

©2020 Clubets, All rights reserved. Legal Notices

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?