With property being used as much as it is for investment purposes, one would think that it would be a relatively simple task to find things to comment upon or write about that would be of use to investors. That is until something a little different from the everyday norm – in this case a volcano.
It would seem the world press (or at least Europe and Scandinavia) have dropped almost all forms of news just to talk about a volcano whose name they cannot pronounce, (Eyjafjallajokull) and continue to go on about it with no sign of stopping. All of the news streams, blogosphere, twitter, and just about any other form of news or social media appear to be jammed solid with it. Great if you have plans to become a volcanologist, or you have a school project about volcanoes. Anyone would think an ash cloud had actually got into the internet itself!
Anyway, rant out of the way and finding some positivity on the subject at hand, we ask ourselves if there is anything to actually be gained out of this naturally occurring phenomenon?
On the face of it, most will say no, primarily due to the unprecedented amount of disruption this particular eruption has caused, but if you think about it, many investors have volcanoes to thank for the location of their holiday home.
– A very popular holiday resort indeed has its own volcano – Mount Teide. Technically dormant and a major tourist attraction, it does still emit smoke and ash on a very low level and the smell of sulphur is present near the peak. The vast majority of the surrounding Canary Islands exist due to the volcanoes previous activity, generating much tourism for the Spanish province.
– An entire US State spawned by volcanic activity, many dormant or extinct, but still a fair number of volcanoes actively bubbling away slowly but surely providing local businesses the opportunity to provide volcano tours.
– There are some 17,000 islands in the Indonesian archipelago, most of which are a direct result of volcanic activity. Bali being the most well known for tourism (although Java and Sumatra have their reputations for a different reason – predominantly coffee). The ash rich soil and the equatorial location make them perfect for farming.
- The most recent large scale living memory eruption in Europe though doesn’t seem to have had much of a mention in the never ending stream of press. Mount Etna in Sicily has erupted numerous times over the past few decades (although it would seem it has failed to shut down international air travel) and the surrounding area is heavily farmed, again due to the nutrient rich soil. It still attracts tourists and scientists constantly, and unusually it produces the odd smoke ring
now and again.
Whilst it’s highly unlikely IPIN
will be offering "Volcano Investments" any time soon, there are still profitable benefits to be found in the ash cloud of doom!
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- Monday 19 April 2010