International Investing

The furious economic growth of the BRIC’s (Brazil, Russia, Indian, China) makes increased world wide energy demand almost inevitable. But will the most growth come in coal, oil, or something more green? The Agora Financial newletter, Whisky & Gunpower suggests investing in molybdenum to gain exposure to all energy sectors. It’s used almost everywhere:

You can also find moly in the coal field… The corrosion resistance, combined with temperature insensitivity, makes moly very important in the production of oil and natural gas pipelines…. moly is used to remove sulfur and nitrogen in making light, sweet crude… Molybdenum can be found in every modern turbine used in a power plant…. In a geothermal power plant, moly can be found in the back-pressure turbine or the condenser and pumps that reinject the fluids back into the earth. In wind energy, moly is used in the actual structure of the windmill and can be found in everything from the bearings to the generator. In hydroelectricity, again, moly can be used in the turbines and generators… Molybdenum’s contributions to the world of nuclear energy are by far the most significant…

Current estimates of a shortage begin in 2009-2015 which makes this  longer term trade. Read the full article here.