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Rediff.com  » Business » Where is OPEC spending its wealth?

Where is OPEC spending its wealth?

By Commodity Online
November 16, 2007 14:04 IST
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Rarely has a cash explosion of $867 billioni ever hit the markets at one time. Yet that's exactly what's happening right now.

It's more money than ever poured into the wireless revolution ($113.3 billion), gold ($45.1billion), or even the giant Internet boom in the 1990s ($319.2 billion) - combined, as you'll see in a moment.

And here's the thing... Investors who know how to track this enormous capital flow are about to be rewarded handsomely, with the opportunity to make 20, 30, even 50-to-1 gains in the coming months on a silver-platter opportunity.

And this is happening despite interest-rate and inflation rumors... Despite the looming collapse in real estate... Or the declining dollar... Or even the mounting $9.1 trillion U.S. deficit.

The returns are nothing less than explosive. Already a few smart investors are sitting on barrels of cash - even while commodities worldwide have taken a walloping 21%ii hit in the May-through-August meltdown. Just take a look:

  • 297% in 10 months on Titanium Metals Corp. Airline and defense contractors are booming, creating an additional billion-dollar demand for this precious metal used in airplanes, missiles and armor.
  • 333% in 12 months on Tenaris SA, a little-known but key supplier of seamless pipe worldwide. Big producers like Exxon are spending billions on getting more oil to market faster.
  • 1,273% on U.S. based Empire Resources in 12 months. China's been gobbling up commodities for the past 8 years. Its devotion to oil and steel are not news. But it recently started bleeding the market for aluminum - to the tune of billions...
  • 1,540% on Cygne Designs. 300 million new customers poured billions into the world's fastest growing retail boom in history, cashing in on 400 new malls built in three years in one of Asia's red-hot economies...

The 'Biggest surprise of this decade'

According to Newsweek: You see, tracking the big capital flows may be the only way to make any kind of real money any more. And the money is big, almost unimaginable... According to the renowned Institute of International Finance:

A whopping $345 billioniii in 'industrial money' is projected to move into 8 parts of the globe by the end of 2006 alone, including the U.S., creating a boom for dozens of companies. Early estimates for 2007 are even higher.

But here's where things get really profitable... Just look at what the economics team at financial giant UBS just said in a proprietary, landmark report:

OPEC is now spending 83% of its $629 billion in revenues from oil, compared with 1974, when it was spending only 27% of its petrodollars...

Fact is, OPEC's gone crazy, spending its wealth on everything. And that accounts for a whopping $522 billion this year alone, fueling new business and markets in every corner of the globe - including the U.S.

Added to 'industrial money,' this total of $867 billion is still just a trickle of what's to come...

The esteemed and independent McKinsey Global Institute just completed its recent yearlong study of money flowing into the top 100 countries. The reports states that:

This explosion of money is estimated to increase by $82 trillion by 2010.iv That's trillion with a 't.'

This expansion is already fueling profits in nearly every corner of the globe, including the U.S. It's never been more important to get in now on this wave of super fast-growth stocks propelled by this raging wall of cash.

In the next 18 months, a few investors will have the opportunity to begin turning even a modest $10,000 investment into a $1.54 million estate on a simple string of trades, which you'll see in a moment... All while interest rates, inflation, and the topsy-turvy dollar mind their own business.

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