Quoted from: Money Morning Publication
By: Bill Patalon
The New Gold
Hello. I’m Bill Patalon, the Executive Editor of Private Briefing. I want to you about the most exciting and unusual investment on the planet. It’s a global treasure hunt, unlike anything I’ve ever seen.
Last year, it created $70 billion of new wealth – and that figure is only going to continue to rise, hitting (potentially) $105 billion this year.
This immense wealth is being created thanks to an international shortage of... sand!
“The sand and gravel business is now growing faster than
the economy as a whole. In the United States, the market
for mined sand has become a billion-dollar annual
business, growing at 10 percent a year since 2008. But
as demand has risen – and the damming of rivers has
held back the flow of sand from mountainous interiors –
natural sources of sand have been shrinking.”
~ The New York Time
It Begins With a Shortage of Sand It’s hard for most people to fathom how a shortage of sand can be even possible. But it helps to first understand the importance of sand to our economy – indeed to human civilization as a whole.
Just about everything in our daily lives requires sand as an ingredient. Your average house is built with 200 tons of sand. Your average hospital – 3,000 tons.
Each and every mile of paved highway requires 48,280 tons of sand. And every nuclear power plant consists of 12 million tons of sand.
Glass, silicon, and lightweight alloys like the ones in jet engines are made from sand.
And that’s why, despite being the third-most abundant resource on the planet, the world is currently experiencing a dramatic shortage of sand – amounting to about 235 million tons short of demand this year.
Not only that, but as it turns out there are different types of sand – “good sand” and “bad sand.”
Take desert sand, for instance. You might think we could use desert sand for buildings and glass, but desert sand is too fine and smooth. Its grains won’t adhere to rougher sand, and tend to blow away.
The fact is that all those massive deserts in North and South America, Africa, Asia and Middle East are filled with “bad sand,” sand that is essentially useless.
That tells you why the desert state of Dubai brought sand for its beaches all the way from Australia. Now there are many types of “good sand.” It’s found on beaches, in riverbeds, and in mines. Its grains are able to withstand higher pressure and can stick together.
“Good sand” is usually sold by the metric ton. The world’s mining companies
are expected to grow “good” sand production by 76% over the next three years, to 248 million metric tons a year.
But demand for “good” sand is expected to grow to 487 million metric tons over that same period, outstripping supplies by almost 250 metric tons.
Simply put, we have a classic supply/demand squeeze in the sand business right now. And that supply/demand squeeze is giving us a huge investment opportunity.
America – The “Good Sand” Capital of the World
Turns out, the biggest players in the $105 billion “good sand” business are right here in America. We have the most expensive and the highest quality sand in the world inside our borders.
In the United States, the sand and gravel business is now growing faster than the economy as a whole – growing at 10% a year since 2008.
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It is not hard to see the advantage that FHMC has strategically in the utilization of the millions of tons of FREE - Good Sand by-product produced annually from our mining operations.
This is a revenue stream not calculated into our financial models and will bring an added financial windfall to our company!
The Dimension Stone and Aggregate division of FHMC will target and focus in the highest quality product available anywhere in the world today. With additional imported marble and granite stone from our European Operations, headquartered out of Sofia, Bulgaria,
we look forward to soon dominating the specialty
Dimensional Stone & Aggregate Markets.