$70B Market, Critical Importance

Half a millennium ago, in the 15th century, an Italian artisan discovered a new method for turning sand into transparent glass. This discovery ignited the scientific revolution of the Renaissance. Microscopes and telescopes soon came along, manufacturing methods for cheap glass were developed, we entered a new stage of scientific advancement.

We’re all aware that molten sand turns into glass. The importance of glass is indisputable. You’re looking out of your house through glass, you’re drinking out of glass, your camera’s lens needs glass, the light in your room is in a glass bulb. But glass goes far beyond this.

In 1952, a British engineer developed a scalable manufacturing method for sheet glass, which ignited the trend of large glass sheets as walls for buildings. How many buildings constructed before 1952 can you find that are made of large glass sheets like the skyscrapers of today?

But glass is hardly just one of the materials that require a significant amount of sand.

Our world is being built using sand. Some experts argue that sand actually is the #1 most important material in the world.

I want to share a photo with you.

This is the city/nation of Singapore. In the past 40 years, Singapore has created an additional 130 square km (50 square miles) by land reclamation from the sea.

The environmental damage from this project was so disastrous that countries such as Indonesia, Vietnam, and Malaysia have banned the export of sand to Singapore. This is not surprising considering that at least 20 islands have disappeared in Indonesia (since 2005) for Singapore’s land reclamation project.

Might you remember the ambitious islands project in Dubai? This ego-boosting project that some might call “compensation behavior.”

You’d think that Dubai would just use the Desert’s sand. After all, Dubai is in the middle of a desert.

The problem is the desert sand is not helpful. It’s shaped by wind rather than by water. Therefore, the desert sand grains are too round to properly bind together. That’s why this project in Dubai required the sand to be mined from the Ocean floor.

All over the world; rivers, lakes, and sea beds are mined for their sand. Some are mining this sand with a license, and others are not.

In India, just like in dozens of other countries, a sand mafia has risen to power.

In 2015, award-winning journalist Vince Beiser created an investigative report for Vice media (linked here). This article explains how the local sand mafias have reportedly killed hundreds of people in recent years. They kill farmers who report them, they kill journalists who film them, they kill police offers who arrest them, and they’d kill government officials if they oppose them. Sand is a big business and money talks in a developing country.

Vince Beiser also is the author of this month’s Book of the Month: The World in a Grain – The Story of Sand and How It Transformed Civilization.

This intriguing and well-written book explains why the author believes that sand is the most critical material in the world.

The sand used by manufacturers consists of 95% pure silicon dioxide. These silicon dioxide particles are crucial for manufacturing technological products, whether fiber-optic cables or semiconductor chips.

This sand is also used for the creation of concrete. Sand is mixed with gravel, cement, and water. Sand and gravel are the most critical components of the mixture. Concrete is the essential building material for pretty much everything. For example, concrete is needed to lay highways around the country, build homes and other buildings, and create dams and canals.

Today we can admire a masterpiece such as the Hoover Dam. Still, few of us are aware of the unbelievable amounts of sand mined just a few miles away.

The other great American invention: fracking. Fracking allowed the US to become the world leader in the extraction of oil & gas. However, fracking requires sand. Lots of sand. More sand than one can possibly imagine.

The sand extraction industry is estimated to be worth $70 billion. It’s a sector nobody thinks much of, but that is surprisingly important.

The next time you fly down to Miami, just remember that the beaches there are engineered environments purpose-built for profits. The original (natural sand) beach has long vanished. Instead, the Federal and State governments have spent billions on artificial beach replenishment. Billions of taxpayer dollars.

I’d suggest you read Vince Beiser’s Book: The World in a Grain – The Story of Sand and How It Transformed Civilization.

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