3 Reasons Why Palm Oil is a Good Investment

With the current sub-prime credit woes in the United States and the sky rocketing global crude oil prices, many people are finding it challenging to invest their hard earn money. Most of the investment instruments in the market are either tied to the world stock market or crude oil prices. However, there is one form of investment that has a good and strong fundamentals for sustainable growth and returns. It is palm oil (P.O). This article will highlight 3 reasons why palm oil is a good investment for the public.

1) World population growth. The population of the world has just breached 6 billion. The number will increase exponentially in the near future. This is a great support for the demand of P.O because as an edible oil, it is used in the manufacturing of numerous consumable products. The items derived from palm oil are ranging from ice cream, chocolates, candles, cooking oil, soap, detergent etc.

2) The banning of using trans fat in the US. Since January 2007, US has banned the usage of artificial trans fat on packaged food. Trans fat is a vegetable oil that has been treated with hydrogen in order to make it more solid and give the food a longer shelf life. This substance has been shown to cause major health risks such as cancer and coronary heart disease when consumed. The suitable replacement for trans fat is palm oil.

3) Bio-diesel fuel to replace gasoline. This is going to be the major push for the high demand of P.O in the future. With the current high global crude oil prices, countries around the world is at the mercy of the oil producers. An alternative energy source will have to be found to solve this problem. One feasible replacement for gasoline is bio-diesel. One of the main element to produce cost effective bio-diesel is palm oil.

There are many more reasons that support the high future demand for palm oil. It is surprising how the fruits from these plants can be so versatile and useful. This shows that money really can grow on trees.