How to Profit from Live Gold

Seafood, a natural resource that Larry Edelson calls "Live Gold", is a resource market that is still being largely neglected, yet is as attractive as the rest of the resource markets. As a result of dwindling supplies and soaring demand, Mr. Edelson thinks seafood prices and the companies in the industry trying to help solve the shortage problem could soar in value in the years ahead.

On the supply side, according to a report by a team of well-respected scientists, ecologists and economists in the journal Science, the populations of just about every kind of seafood will collapse in the next 40 years if current trends of overfishing and pollution continue at the same rate. Already, at least 29% of the world 's fish and seafood species have disappeared from the oceans. If current consumption trends continue, without accelerating, and no new methods to increase supplies are found or implemented, 40 years from now all fish and seafood supplies would virtually vanish from the planet. The fragile ecosystems of the world 's oceans are being stressed by five major threats that are reducing marine stocks and impairing the sustainability of aquatic life.

1. Fisheries operations: In the last 20 years, the world 's fishing countries have greatly boosted their seafood harvesting to a level 30% greater than what is needed to harvest the world catch. And that overcapacity to harvest seafood has not been curtailed. To the contrary, the seafood industry has been overharvesting the world 's seafood for nearly all of that 20 years, quickly depleting stocks.

2. Chemical pollution and eutrophication: Pollution kills marine life, stunts growth, impairs reproduction, and can even effect genetic mutations in sea animals. Pollution also encourages a process called eutrophication, the proliferation of plant life, especially algae. These excess plants and decaying algae reduce the water's oxygen content, killing off marine life.

3. Alteration of habitats: More than half of the world 's population currently lives within 40 miles of a shoreline. But by 2020, 75% of all the people in the world could be living less than an hour's drive from the ocean's edge. That means more erosion, more destruction, and more pollution of the natural habitats of many ocean species.

4. Competition from exotic species: Interjecting a non-native species can have disastrous consequences on the delicate ecological balance. Often the "local" species is not equipped to defend against or compete with the strange interlopers. Consequently, the native populations decline.

5. Global climate change: Scientists are now starting to study global warming and its impact on world seafood production. If the warming pattern continues its present course and rate, it's likely to aggravate shore and habitat erosion. It could also increase the salinity of estuaries and freshwater aquifers. And it could alter tidal patterns in rivers and bays, causing increased coastal flooding.

All of these upheavals and dislocations in the natural order add up to bad news for marine life. Particularly at risk will be saltwater marshes, mangrove ecosystems, coastal wetlands, coral reefs, coral atolls, river deltas and all the marine species they support.

All of these declines in supply are occurring at a time when seafood demand is soaring. Health-conscious Americans are eating more seafood than ever. In just four years, per-capita consumption jumped 9% from 15.2 pounds per person in 2000 to 16.5 pounds in 2006 (the latest year for which figures are available from the NOAA). What's more, it's estimated that when the 2007 official numbers are released later this year, the U.S. per capita seafood consumption will have hit a record 16.8 pounds per person.

"The fish and seafood deficit can only be alleviated through dramatic increases in aquaculture, better known as fish farming. Aquaculture, as a means of seafood production, took off during the last half of the 20th century. Now it's the fastest growing segment of the world 's food economy. According to the Food and Agriculture Organization of the United Nations, nearly 50% of the fish consumed as food worldwide are raised on fish farms rather than caught in the wild. It has a long way to go. Seafood is one of the most rapidly growing ingredients in the global diet. And by 2030, another two billion people will be on the planet, eating more and more seafood, requiring an additional 37 million metric tons of seafood supplies," Mr. Edelson states. He's optimistic that aquaculture can easily handle the problem and believes, "Those who get in on this trend early stand to reap the profits."

To read this issue online, please visit:

http://www.moneyandmarkets.com/Issues.aspxNewsletterEntryId=1673

About Larry Edelson and Money and Markets

With nearly three decades of experience in precious metals and natural resources markets, Larry Edelson has played a pivotal role in training Weiss Research staff and in guiding Weiss Research's customers to prudent investments in the sector. His Real Wealth Report, Gold Trader Hotline and Energy Options Alert provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management. His team of technical analysts helps enhance the timing of investment recommendations with the aim of continually improving the performance results for investors.

Mr. Edelson is also a regular contributor to the daily e-letter, Money and Markets. Recognized as an expert in precious metals and natural resources, he is often called upon by the media for his investing views. Mr. Edelson has been featured on Bloomberg, Reuters, and CNBC as well as The New York Times, New York Sun, and Marketwatch.com

Mr. Edelson holds a B.A. degree from Columbia University.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.

How to Profit from Live Gold

3228 readers online...

How to Profit from Live Gold

Search