Investment resolutions for 2010


Energy: The International Energy Agency (IEA) released its World Energy Outlook in late 2008. The IEA estimates that every fossil fuel resource we rely on today will simply not be able to keep pace with demand. Coal reserves are expected to be over in less than a 100 years; natural gas production is expected to go into a decline after 2020; and uranium mines will not be able to keep pace with demand, and current oil production from a majority of oil fields are past their peaks and beginning their decline.

The next alternative to traditional energy is alternative energy or renewable energy. Whether it’s solar, wind, photovoltaic, geothermal, bio-fuel or hydropower, these alternative sources of energy will gradually replace more conventional sources.

Commodities: Recent money supply growth with central banks around the world printing money, higher inflation is likely to stay for some time. In this scenario gold, silver and other commodities are a good destination.

Developed economies such as the US, France and Germany have over 65% of their forex reserves in gold. On the other hand, Bric countries and other South-east Asian economies have less than 5% of reserves in gold. Over time as their levels go up, gold prices will be driven higher. Fertiliser and food-grain will also remain attractive through the decade as we try to feed the world’s growing population and combat the decline of oil with biofuels.