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Water
Aqua Index: 1217           12/22/2016 22:30

WATER AS A COMMODITY

WHY TRADE WATER?

The UN and the World Bank, as well as virtually every other major international body involved in global economics, has become acutely aware that the supply of fresh water is limited while global demand is ever on the increase.  Not only this, but the governments and landowners responsible for stores of fresh water have traditionally opted to invest in industries that underestimate the importance of this vital resource.

Water is squandered in production processes, even those as simple as the manufacturing of T-shirts, because a definite value is not attributed to it.

The only truly effective method of protecting the supplies we have is to turn water into a financial asset.

The fiscal benefits include the use of fresh water as recognised collateral.  This means that states or anyone in possession of large quantities of fresh water can now ascribe a value to their asset and use it against loans.

Financial institutions wishing to invest in commodities (or hedge against inflation) will be able to add water to their portfolio.  In addition they will be able to invest in an asset that is ultimately more stable than specific commodity markets by looking at water not only as a commodity in its own right but as a denominator representative of all agricultural stock – a commodity index.

Water is the new ‘blue’ gold!

AQUA INDEX makes all this possible.

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