Investors Pick: An Alternative to investing in Oil and Gas
It used to be that oil and gas were the dominating forms of energy fuels on earth. In fact, for a long time it was considered a safer bet than gold and silver because oil and gas were both finite resources that were being exploited. And unlike gold and silver, oil and gas were resources in constant demand and use and were thus being depleted.
However, because they’re a finite resource there’s the very real possibility that we’ll run out of them one day. We’ve already seen what happens when oil and gas reserves go low, with prices spiking dramatically causing panics wherever the resource grows scarce. Worst off, it has made only a few companies at the top extremely rich, bottlenecking a lot of initial investing in any other companies that want to trade in oil and gas, thus creating a monopoly near the top where very little changes occur in the market that would create diversity.
This is also coupled with the fact that emerging markets are also starting to skew slowly towards renewable energy sources as the consumer market starts to open up towards the idea of creating renewable energy and technology improves and becomes cheaper to meet the growing demand. All of this change, development, and price decrease serves to increase the number of people entering into the energy market as consumers and thus creates more of a demand. A demand that many companies are springing up to try to meet.
So, what does this mean for investors? It’s creating a LOT of new opportunities for them. New development every day improves renewable energy by leaps and bounds. Solar power cells are able to gather more of the sun’s rays and convert it to energy; where once they took only 10% of the sun’s energy, they now can convert 15% which is amazing.
Hydrocurrent technology is also being improved on, as well, with newer dams being built around the concept of being eco-friendly so as not to destroy the local habitat to convert rivers to energy sources. Biodiesel and others as well are currently on the market and being tested in massive quantities.
Investors of all kinds at this point literally have the pick of the litter on who they can choose to invest with and have a greater chance of a positive ROI thanks to the current renewable energy boom. Instead of just the top 5 that they can invest in who control oil and gas, they can now look to about 50, 100, or even 200 different companies, all of whom have something more to offer to their consumers and investors.
“Don’t put all your eggs in one basket” is how the saying goes, and this is the number one rule of thumb for investors: diversity is the name of the game.
However, professional investors still prefer to invest in oil and gas, and that’s mainly due to these two reasons:
- They present a limited number of commodities that the world depends on and are in constant demand for, making them highly valuable for a long time. Lately however, the world is slowly but surely skewing towards renewable energy sources and it’s just a matter of time for their current value and application to be a thing of the past.
- They’ve been continually rising in value, and this is connected to the previous point, since their limited amount and their use being nonrenewable makes their demand rise even if their use in itself has slowed. Or to make matters simpler, since it’s a finite resource, countries are always buying to stock up even if the use is lower. This is why their value is always on the uptake.
And of course, these were great investments in past decades and very popular among professional investors that turned a great profit for many of them, but since they’re not clean energy their continued use and environmental effects have been called into question due to pressure from the international community forcing the world to skew, slowly but surely, in favor of renewable and green energy sources.
All of these aspects indicate that right now it’s probably a good time to invest in something other than oil and gas. And the projections show an investor’s trend that points towards an asset that has huge demand and increases in value but with a liquidity like oil and gas provided for them.
Up until now this was something out of a sci-fi movie, but recently there’s been talk of such a solution. It’s a New Asset Class (NAC), developed by a holding of a consortium of fintech companies, that continuously gains value, is used globally, and is a tradeable and a very liquid instrument. And on top of it, it pays out yearly dividends.
Investors who have long trusted fossil fuels are turning to this New Asset Class to diversify. Click the link below to learn more