Potash Stock Is Possibly A Good Bet

The rather strange name of a salt that is attracting great interest in the twenty-first century derives from a practice of putting ash into a pot, adding water and waiting for it to evaporate. What is Potash is a question that might as well be framed as 'What is potassium?' but the old name for a primitive fertilizer has it own momentum, and a potash stock is a company that mines potassium.

Potash is a word that refers to compounds such as potassium chloride or potassium sulphate. The main features of these substances is that they are soluble in water and contain the element potassium. Plants can take up this element as one of their main nutrients. It keeps them healthy and improves their ability to use water.

Gold, silver and potassium are all elements. The first two have always attracted the eager eyes of human beings whilst ashes in a pot would not have excited many people. However, plants have the same lust for potassium that human beings have for gold. Without it they cannot survive. Appropriately, in the environmental age, human beings are turning their attention to the pink rock that plants love.

Rising demand from Asian countries has spurred exploration and new deposits are now being unearthed, sometimes in surprising places. Rich deposits have been found in Africa and in Yorkshire, England which might have been thought to have been mined out of all valuable minerals. So the ancient element has recently put on new clothes and is called 'pink gold' by some people.

Competition for the Earth's natural resources is fierce. Big mining corporations compete fiercely between themselves but have to contend with politicians. In African there are still politicians who pursue the theft of an entire country's mineral wealth, and even in countries with stable political systems politicians are eager to get their hands on resources, ostensibly in the interests of tax payers.

In the late twentieth century it became apparent to many people that natural resources were being depleted at an unsustainable rate and that human survival was becoming an issue with, political and economic consequences. People who step onto the environmental bandwagon tend to be articulate and passionate. They have acquired considerable political and social leverage and their intervention can have considerable consequences for companies that fall foul of them. Delays, environmental assessments and litigation can seriously affect the viability of mining projects.

Population growth is one of the things that makes environmental issues urgent. The world population has now reached seven billion and is still expanding. This demographic fact is having momentous consequences for all people on earth. The explosion in potassium prices is only one consequences but it is substantial since burgeoning populations in India and China must be fed by increased agricultural production.

The prospects for potash stock look good. There is steady demand from a world that is hungry for the pink rock and established mining companies have secured access to rich deposits. Against that, one has to take into account that the price has already risen substantially and may be due for a retreat. As usual, an investor needs to do due diligence before catching a wave that may be just beginning to swell, or about to break.

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Find out why Potash Stock is essential to boosting the world's food production, and why efficient mining solutions are key.
http://www.westernpotash.com/

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