Research
At RCG AI our success depends heavily on our ability to not only assess the here and now, but more importantly, our ability to envision how the here and now is likely to affect the future.
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And request your copy today of: Raw Power: The Case for Commodities
Here’s an excerpt
“It took all of history up until 1830 to put 1 billion people on the planet. By 1930, 100 years later, there were 2 billion people on the planet. By 1974, 44 years later, there were 3 billion people on the planet. By 1986, 12 years later, there were 4 billion people on the planet. The world population now stands at 6 billion and we are adding the equivalent of the population of New York City to the planet each month. It now takes only 4 days to replace one million people.”
To act upon the trends shaping the commodities-related marketplace, we apply our research skills and rigorous insights to recommendations and product ideas that will best match our clients’ objectives.
Particular attention is paid to the long-term trends influencing agriculture, mining and energy.
Agriculture: The decline in global wheat production and increasing demand...
Rising living standards: A new landscape of global demand
- Historically, 70% of growth in food consumption was linked to population growth.
- Between 2005 and 2020, world population will increase by 18% to 7.6 billion
- Result: With declining wheat production and increased demand, prices for agricultural commodities are almost certain to increase.
Source: U.S. Census Bureau ’05
Mining: A new urban infrastructure is arising -- and increasing demand for metal
- In 2015, six of the world’ 10 largest cities will be located in Asia.
- Asia’s metal-intensive modernization will be based on the expansion of urban infrastructure; including high-rise buildings, bridges, railways, highways, etc.
- From 2000 to 2015, the cities of Delhi and Jakarta as well as others will grow faster than 2% per year; and their populations will need more metals than ever before.
Source: United Nations 2005
Energy: Increasing energy demand boosts prices
This chart shows the dramatic impact of economic development on the demand for oil and energy. From country to country, oil consumption increases most rapidly in early industrialization, then levels off before reflecting the demands of real income growth.
