Investing in natural resources is a great way to secure your financial future. Not only are natural resources attractive investment prospects, but NOW is the best time to invest. In this blog post, we will define what natural resources are and provide an in-depth breakdown of the following:
- Natural gas
- Silica sand
- Iron-ore
- Palladium
Each section will include a definition of what it is, where it is used, supply, demand and price/market outlook. We will conclude with our final thoughts on investing in natural resources.
Post Contents
What Are Natural Resources?
Natural resources are natural materials and substances that can be used for economic gain. The most common natural resources are air, water, land, timber, oil, natural gas, coal, gold, silver, sand, copper and iron.
Why Invest In Natural Resources?
Investing in natural resources is a great way to secure your financial future. Here are some reasons why:
- Natural resources are a limited commodity. There is only a certain amount of natural resources available, meaning they will become more valuable over time.
- The demand for natural resources is constantly increasing. As the world population continues to grow, so does the demand for natural resources.
- Natural resources are essential to the global economy. Without natural resources, the world economy would grind to a halt.
- Investing in natural resources is a great way to diversify your portfolio. By investing in natural resources, you can protect yourself from economic downturns.
In this section, we will provide a rundown of some of our top picks for natural resource investment opportunities.
Natural Gas
Natural gas is a fossil fuel used for heating, cooking and generating electricity. It is the cleanest burning fossil fuel and emits fewer greenhouse gasses than other fossil fuels.
The world’s natural gas reserves are estimated to be around 169 trillion cubic meters. Most of these reserves are located in Russia, Iran, Qatar and Saudi Arabia. Natural gas is a very versatile fuel and can be used in several different ways. It is used for heating, cooking, generating electricity and powering vehicles.
The demand for natural gas is expected to continue to grow in the future as more countries switch to using cleaner-burning fossil fuels. As a result, this has allowed the price of natural gas to remain relatively stable, with an annual compound growth rate of 10.6%, according to Yahoo.
Therefore, investing in natural gas is a great way to diversify your portfolio and, additionally, due to its stability, offers protection from economic downtowns.
Iron-Ore
Iron-ore is a type of rock that contains iron. The world’s reserves of iron ore are estimated to be around 170 billion tonnes. The majority of iron ore is used in the steel industry, where it is used to make steel. Iron ore is also used in the construction industry, where it is used to make concrete.
The demand for iron ore is expected to continue to grow as the world economy continues to expand. Additionally, the supply of iron ore is relatively limited, which has increased the price of iron ore over time.
In fact, The Assay highlights that iron-ore outlook is looking extremely promising, with the price of iron ore expected to continue to increase in the future due to an increase in the steel industry.
This essentially translates to increased demand and supply, meaning more money off your potential investment!
Silica Sand
Silica sand is a type of sand that is rich in silica.
While not a glamorous investment, silica sand has many uses, including making glass, foundry sand, filter media and abrasives. It is also used in the oil and gas industry. Silica sand is a very versatile material that can be used in several ways.
The majority of silica sand is used in the construction industry, where it is used to make concrete, mortar and asphalt. Silica sand is also used in the manufacturing of glass and ceramics.
Consequently, silica sand enjoys a steady stream of demand, which has allowed the price of silica sand to remain relatively stable. Additionally, the world’s reserves of silica sand are estimated to be around 70 billion tonnes, offering plenty of supply to meet the current demand.
Therefore, we have seen silica sand erupt to become a powerhouse natural resource in an investors eye, with Global newswire valuing the market at $32.48 Billion by 2028.
Buying into silica sand is a great option for investors looking for stability and a reliable return over a longer-term investment.
Palladium
Palladium is a type of metal that is used in a number of different industries, including the automotive industry, where it is used to make an extremely popular electric vehicle. Palladium is also used in the electronics industry and the dental industry.
The world’s reserves of palladium are estimated to be around 140 tonnes. The majority of palladium is used in the automotive industry, where it is used to make catalytic converters. Palladium is also used in the electronics industry and the dental industry.
The demand for palladium is expected to continue to boom as the world economy expands and moves towards increased use of electric vehicles. Additionally, the supply of palladium is relatively limited, which has allowed the price of palladium to increase steadily over time.
Therefore, palladium offers a strong return on your potential investment if we see electric vehicles continue to rise in popularity and demand.
Conclusions
Now is the time to invest in natural resources as the demand is expected to grow, and the prices of natural resources are relatively stable. Silica sand, iron ore and palladium are all great options for investors looking to get involved in the natural resources market.
Alternatively, if you aren’t sold on these prospects, check out our guide on the 9 best ways to make money in 2022 for more cash-generating tips!
