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One of the world’s most populated cities faces imminent water shortage as residents go without for days or weeks

One of the world’s most populated cities, Mexico City, is facing a dire water crisis that is rapidly escalating. With nearly 22 million residents, the city is on the verge of a “day zero” scenario where the water supply will no longer be able to meet the needs of its people.

According to the Water Basin Organization of the Valley of Mexico, there are fears that the Cutzamala System, the main source of water for the city, will not have enough water for residents starting from June 26 until September. Already, many locals are enduring severe water shortages, going for days, if not weeks, without running water in their homes.

The situation has become so critical that even basic daily activities like washing cars or watering gardens have been restricted to conserve water. Residents like Juan Ortega have resorted to recycling water from washing machines to meet their basic needs.

Businesses in the city are also feeling the impact of the water shortage. Arturo Gracia, a coffee shop owner, shared that his business has to pay for a water truck to supply essential water for toilets and other uses. The scarcity of water is affecting multiple neighborhoods in the city.

Adding to the crisis is the recent high temperatures that Mexico City has been experiencing, with temperatures reaching nearly 90 degrees Fahrenheit. This has put additional strain on the already diminishing water supply. Rafael Carmona, the director of SACMEX, labeled the situation as “unprecedented” due to the lack of rainfall in the region over the past few years.

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Poor water management practices and a high population density have further worsened the crisis. Underground leaks account for a significant amount of wasted water in the city, with up to 40% of the water loss attributed to leaks. Efforts to fix these leaks have been initiated, but the challenge remains immense.

President Andrés Manuel López Obrador has assured that the government is working towards increasing the water supply to prevent a “day zero” scenario this year. However, some experts believe that without significant changes and improvements in water management, such a crisis could be a looming threat in the coming years.

The broader impact of the water shortage is felt across Mexico, with many parts of the country experiencing severe drought conditions. The lack of rainfall and low water storage in dams have placed the entire country at risk of water scarcity.

As Mexico City braces itself for a potential water crisis, it is evident that urgent action is needed to address the underlying issues causing the shortage. With the risk of “day zero” looming, the city must prioritize sustainable water management practices and conservation efforts to ensure a reliable water supply for its residents.

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Is now the right time to invest in gold as prices have cooled?

Now may be the time to buy gold following a recent lull in its price.

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The price of gold has climbed to record highs recently and has remained strong through much of April. And, that growth continued until the precious metal traded at around $2,390 per ounce on April 19, 2024. But since, growth in the price of the precious metal has cooled, with gold’s price now hovering around $2,300 per ounce.

This lull in gold’s price may represent an investment opportunity.

In general, investing is centered around buying assets when prices are low and selling them when prices are high – generating a profit on the difference between the two. So, considering the declines in gold’s price over the past few days, now may be the time to make your investment. But is buying gold during this lull in prices really a good idea?

Compare your gold investment options among leading brokers now.

Gold prices have cooled. Should you buy in now?

With gold’s price down from recent highs, you may be wondering if now is the right time to buy in. There are several reasons the dip in gold’s price may represent an opportunity to buy. Here are some of the biggest:

Prices may rise again

If looking at a gold price chart shows anything for certain, it shows that changes in the overall growth of the medal come in fits and spurts. Periods of price growth are typically followed by periods of declines and vice versa.

But with inflation rising in recent months – and with gold’s reputation as a safe-haven asset that can hedge against inflation – it only makes sense that the price of the precious metal will eventually start to head up again in the future. While attempting to time that directional change may be tricky, buying the precious metal while the price is down gives you the opportunity to take advantage of any upward movement that may be ahead.

Add gold to your portfolio now before prices have a chance to rise.

You may be able to make a quick profit

Gold isn’t known as an asset in which you can earn a quick return, but in today’s market, that may be the case. Don’t forget that in January, gold was trading at just $2,000 per ounce. And, by mid-April, the commodity’s price had climbed to around $2,400 per ounce. That’s about 20% growth in a matter of months, much of which happened since March 1 – an impressive climb for any investment asset.

Perhaps more importantly, gold’s price growth through the beginning of 2024 shows that the commodity doesn’t have to be a buy and hold style investment that you keep in a safety deposit box or precious metal depository for years to come. There’s also the possibility that the commodity’s price could climb further ahead, making it a compelling way to potentially generate a quick profit.

There are other benefits of investing in gold

There are other benefits of investing in gold that have little to do with the price growth seen thus far in 2024 – or the lull in prices seen over the past couple of days. Those benefits include:

Inflation protection: Gold has long been considered an inflation hedge, and for good reason. When inflation drives the prices of consumer goods and services up – and the value of the dollar down – gold’s price tends to rise. So, it could be used to maintain the value of your portfolio during inflationary economic conditions. That’s important in today’s economic environment as stubborn inflation continues to weigh on the value of the dollar.
Portfolio diversification: Gold’s price doesn’t always move in the same pattern that bonds or stocks do. So, mixing a reasonable amount of gold into your portfolio (up to 10% of your portfolio assets) as a diversifier could protect you from losses should one or more of your traditional portfolio assets fall in value. “If you have less than 5% – 10% of your net worth in commodities & FX (forex), you should absolutely consider adding exposure to gold and other precious metals,” says Vijay Marolia, money manager and managing partner at the wealth management firm, Regal Point Capital.

The bottom line

Gold’s price has fallen from recent highs – which may represent an opportunity to tap into growth ahead. However, gold isn’t simply a “buy while it’s low and sell while it’s a high” kind of investment opportunity. The commodity can also protect your portfolio from the stubborn inflation we’ve seen thus far in 2024 while acting as a diversification tool that could increase your risk-adjusted portfolio returns. So, consider adding gold to your portfolio today while it has the potential to grow in value.

Joshua Rodriguez

Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, two dogs and two ducks.