{"id":28084,"date":"2012-03-08T22:58:45","date_gmt":"2012-03-09T03:58:45","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2012\/03\/08\/potash-how-to-profit-from-the-worlds-most-indispensable-commodity\/"},"modified":"2012-03-08T22:58:45","modified_gmt":"2012-03-09T03:58:45","slug":"potash-how-to-profit-from-the-worlds-most-indispensable-commodity","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2012\/03\/08\/potash-how-to-profit-from-the-worlds-most-indispensable-commodity\/","title":{"rendered":"Potash: How to Profit from the World\u2019s Most Indispensable Commodity"},"content":{"rendered":"

By MoneyMorning.com.au<\/strong><\/p>\n

There are some commodities so rare, so valuable, and so indispensable that their mere existence in large quantities makes them a source for the wealth of a whole nation. These commodities create huge surplus profits for a country. <\/p>\n

<\/span>
\nOil is the best example.<\/p>\n

For instance, Norway, Abu Dhabi and Saudi Arabia have built up more than a combined $1.63 trillion in assets thanks to their oil sales. Simply by recognising and investing in a commodity the world can’t do without.<\/p>\n

What if you applied that logic to your own investing strategy? <\/p>\n

What if you could find a little discussed – but indispensible – commodity<\/a> to add to your investment portfolio? Perhaps something that not many people are talking about yet, but will take off – just like oil did – when the masses realise how valuable it is… What do you think that could do to your overall profit and loss statement?<\/p>\n

Well, there is at least one commodity out there that seems like it could fit the bill. Which I’d like to tell you about today…<\/p>\n

Why You Want to Add Potash to Your Portfolio<\/H3><\/center><\/p>\n

Potash<\/strong> is potassium-rich rock. Plants need potassium to grow, but heavily farmed soil can be very low in potassium. Farmers apply potash to the land as a fertiliser to nourish crops and get more produce from each hectare. Without fertilisers like potash to boost potassium levels in the soil, there wouldn’t be enough food to go around. <\/p>\n

Why?<\/p>\n

Two reasons. Supply and demand.<\/p>\n

The global population increasing steadily (at a rate of about 11 million hungry mouths a month), meaning the demand for food is growing. <\/p>\n

However, the amount of viable farmland keeps shrinking (each year some is lost to urban development – and still more becomes desert). This puts a great deal of pressure on the farming sector to increase production. They do this by using fertilisers such as potash. <\/p>\n

Potash Prices are Climbing<\/H3><\/center>
\nPotash prices are now rising fast. Since the start of last year they’ve increased over 30% to reach $476.30 per tonne<\/u> last month. Yet, they are still a long way from their peak, which also makes me confident the price won’t collapse any time soon. <\/p>\n
\"Potash<\/div>\n<\/p>\n

Potash is in demand wherever farmers are growing crops. The world’s biggest potash consumers are therefore China, Brazil, India and the United States. <\/p>\n

The US is a big consumer. But, surprisingly, it imports 91% of the potash it uses<\/u>. <\/p>\n

Most US potash imports come from Canada. The US is keen to be more independent of its reliance on Canada. <\/p>\n

One of the most important points to remember is that potash is less volatile than many other commodities. It moves mostly in line with good old-fashioned supply and demand. There are no futures markets, ETFs or hedge funds playing around with the price.<\/p>\n

Because of this, potash stocks are a bit less unpredictable. <\/p>\n

And, even in a recession, there are almost seven billion people who need to eat. <\/p>\n

That’s why potash is what I’d call a recession-proof commodity. An indispensable commodity<\/a>. And one well worth thinking about adding to your portfolio.<\/p>\n

Alex Cowie
\nEditor, Diggers & Drillers<\/strong><\/p>\n

From the Archives…<\/em><\/strong><\/p>\n

The Stock Market Financial Winter is Coming<\/a>
\n2012-03-02 – Dan Denning <\/p>\n

Why You’ll Want to Watch This ‘Bad’ Retail Stock Very Closely<\/a>
\n2012-03-01 – Kris Sayce <\/p>\n

Higher Oil Prices – Government Guaranteed<\/a>
\n2012-02-29 – Dr. Alex Cowie <\/p>\n

Asymmetric and Economic Warfare with Iran<\/a>
\n2012-02-28 – Dan Denning <\/p>\n

Why the Greek Debt Crisis Has Nothing to Do With the Euro<\/a>
\n2012-02-27 – Nick Hubble <\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n


\nPotash: How to Profit from the World\u2019s Most Indispensable Commodity <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au There are some commodities so rare, so valuable, and so indispensable that their mere existence in large quantities makes them a source for the wealth of a whole nation. These commodities create huge surplus profits for a country. Oil is the best example. For instance, Norway, Abu Dhabi and Saudi Arabia have built … <\/p>\n

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