A Beginner's Guide to Nanotechnology Investing

It has become almost cliché to say it, but the reality is that nanotechnology is the future. Nano-products are already hitting the market, and as time goes on nanotechnology's impact on business and in our daily lives will only continue to grow. That said, we are still in the development stages of nanotechnology and there is no better time to get in on the coming nanotechnological revolution than now.

To have a grasp on investing in the nanotechnology field, one must have a basic grasp of what nanotechnology is. This can be confusing considering the vast number of definitions out there and the many various uses of the technology and the many paths of development.

Nanotechnology promises to impact everything from computers to medicine to dishwashing detergent. This makes for a wide variety of nanotechnology investing opportunities, but also can be confusing to the small investor who doesn't happen to be an advanced nanoscientist. Where are the best places to look for the future of nanotechnology? Where are the best areas to invest in?

Three Key Areas of Nanotechnology Development

There are three key areas that are currently being heavily researched by numerous companies that promise to bear great fruits over the next 10 to 15 years. These are:

Nanomedicine: Medical technology and pharmaceuticals are already a hot area of research and development and one of the most rapidly growing fields in the technical and the business world. Nanotechnology promises to completely revolutionize the medical industry, from creating new nanomachines capable of making precise medical investigations and performing complex surgeries, not to mention vaccines and other medications manufactured at the molecular level.

Nanoprocessors: Intel, the number one producer of computer processors in the world has already announced the anticipated introduction of processors featuring nano-sized transistors only 65 nanometers in length, with promises of even smaller units in the future, as small as 5 nanometers. IBM and other computer companies have been doing similar research as well. Nanotechnology promises to make computer processors smaller, more powerful and more efficient.

Nano Materials: Creating materials bred with nanotechnology is perhaps the fastest growing area of nanodevelopment. It is also the area that has made the largest short-term developments, with several products already on the market. Materials grafted with nanotechnology are more flexible, stronger and more durable than regular materials. This is the safest sector of current nanotechnology investment considering it has already shown progress in the market. Examples run from Mercedes-Benz's new nanopaints introduced in 2003 offering higher gloss and scratch resistance to Montreal Sports' newest Nitro Lite hockey sticks introduced at the 2006 NanoTech trade show incorporating nano-tubes in the shafts creating more durable and flexible sticks. The materials applications offer a wide and diverse range of applications.

Concerns About Nanotechnology Investing

Although nanotechnology's future is quite promising, there are a number of concerns when one is first considering investing in the field.

For one thing, many of the developments are still years off, if not more. This is particularly the case in the medical arena, but in other areas as well. It is also very possible that much of the research and development currently being done could ultimately lead to dead ends with little investing potential creating wasted resources. In such a high tech high stakes field many risks might not be worth taking.

Another problem exists in that many of the companies where the most exciting research is being done aren't public companies. That means that there is no opportunity for investment for the small-time investor. These are still good companies to watch, though, for as they become larger and their developments start to bear fruit they will become public companies.

Many large companies, such as 3M, Dow Chemical, IBM, etc. are currently investing heavily in the nanotechnology arena, and are fairly safe bets for investors. However the companies are already so large that while they might be fairly safe investments, they can't offer the kind of returns on their nanotechnological development that could be offered by a smaller start-up company.

Some small companies with great investment in nanotechnology are public companies and shares can be bought and sold on the public market. For the small time investor this is the best area for investment, but at all times the risks of such investment should be noted. Nanotechnology is an incredibly high-risk field and the investor should always keep himself aware of that fact.

In April of 2004, Merrill Lynch created a new stock index dedicated to nanotechnology. Trading as NNZ on AMEX, the index tracks the performance of 25 nanotechnology based companies. It can provide a safe alternative to the investor scared of the risks of investing directly in a nanocompany.

Keeping Aware of Nanotechnology Development

If you are going to enter into the high risk field of nanotechnology investing, you are going to have to be informed on developments of nanotechnology and where the most marketable developments are coming.

The internet provides an abundance of resources for the nanotechnology investor, keeping you up to date with nanonews as well as what companies are doing what and where so that you know where to put your money. Below are some of the better nanotechnology investing web sites.

The International Nanotechnology Business Directoryhttp://www.nanovip.com This is the best nanotechnology business site out there. It contains an excellent news page that is updated 24/7, includes excellent articles on the nanotechnology field, a complete listing of nanotechnology stocks and even offers a nanotechnology investing forum allowing you to discuss the field with likeminded investors.

The NanoBusiness Alliancehttp://nanobusiness.org The NanoBusiness Alliance is one of many organizations dedicated to the merging of nanoresearch and business interests. The site is a good place for the beginner to begin learning about the marketable aspects of nanotechnological research as well as offering concrete information on the development of nanobusiness.

Nanowerkhttp://www.nanowerk.com An excellent web site that offers a large database into nanotechnology development and nanotechnology materials offered free to all. The site also offers nanotechnology news updated on a daily basis.

NanoTech Nowhttp://www.nanotech-now.com Another excellent nanotech news web site that offers up-to-date information on the newest developments in nanotechnology. It also includes good introductory articles to get you up to speed on nanotechnology and its potential usefulness.