The McKinsey Global Institute recently reported on the effects of Quantitative Easing or QE on the UK economy or to be more precise the net transfer of £110 billion from UK households to the UK government.
The truth, in regards to the world’s mineral resources, is that we in the western developed countries are not in control of supply. There are many serious concerns in regards to global resource extraction that we need to consider.
While it might not look like it now, the most investable trend over the next 20 years is going to be in the resource sector, the renewable and non-renewable resources, the minerals, ores, fossil fuels and biomass.
In light of the strongly growing world population especially in emerging countries the question when staring at the vanishing commodity supply must not be when the commodity boom will end, but rather if the boom can come to an end at all.
The human enterprise now consumes nearly 60 billion metric tons of the world's four key resources – minerals, ores, fossil fuels and biomass (plant materials) – per year and developed countries citizens consume an average of 16 tons of those four key resources per capita.
The world is about to suffer a shortage of equity capital over the next eight years which could total $12.3 trillion. The cause of the coming debacle is simple. Investable assets in the emerging world are growing faster than in the developed world.
The Australian government has recently compiled a database of Australian resource sector projects in Africa and the companies involved. There are over 220 Australian companies with nearly 600 projects in Africa spread across 42 countries.
Currently 180,000 people a day move from the country to the city. Urban infrastructure devours copper. Over the next 12 months that demand might drive investment dollars into juniors with big resources like Catalyst Copper.