Natural Resources Are the Building Blocks of Our World

U.S. Global Investors Weekly (03/31/2010)
"Steel. Copper. Coal. Oil. Gas. Gold. These commodities are all in short supply and increasing global demand. As the world's population grows and both developed and emerging regions invest in infrastructure, the demand and scarcity of these building blocks should increase. Emerging regions are seeing rising urbanization and per capita income. This rising consumer class wants washing machines, mobile phones, cars and a home of their own. They'll need roads, pipelines and power grids to drive their dreams.

Grasp the extent of the trend taking place:
  • Half of the global population is estimated to live in urban areas.
  • 25% of Chinese—more than 40 million people—are middle class. This number could double within the next decade.
  • China is the No. 2 consumer of oil, behind the United States.
  • If China's car ownership growth continues at the present rate—in one generation, all the oil produced in the world today could be consumed in China.
  • India has plans to build 10,000 megawatts in power plant capacity—enough to power 2.5 million American homes every day.
  • In the next five years, $2.5 trillion infrastructure spending is expected for Asia outside of Japan."

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