Svalbard

Svalbard is an archipelago in the Arctic Ocean, located about halfway between Norway and the North Pole. With its tundra and permafrost, only four mammals inhabit this harsh environment: the polar bear, reindeer, arctic fox, and southern vole.

But there is something else there. Buried 390 feet inside of a mountain lies the Svalbard Global Seed Vault. Its mission is to provide a safe storage place for plant seeds by guarding them from the potential threats of climate change, natural disasters, major regional or global catastrophes, amongst other things. The vault is able to preserve seeds for most major food crops for hundreds of years. Some seeds, including those of important grains, could survive far longer, possibly for thousands of years. Over 400,000 seed samples are currently kept there.

Despite its modest entrance (see below), this underground cavern is a marvel of human ingenuity.

Photo: Erlend Bjørtvedt (CC-BY-SA)

Here are some of its many safety features:

• The location’s obscurity provides a high level of overall security.
• The lack of tectonic activity in the area helps ensure the facility’s structural stability.
• The mountain that houses the cavern is made of sandstone, a stable rock that is low in radiation.
• Permafrost conditions allow for a fairly constant temperature thereby aiding in preservation.
• Being 430 feet above sea level ensures that the site remains dry even if the icecaps melt and global water levels rise.
• The archipelago has a ready supply of local coal in the event that increased refrigeration is necessary.
• Seeds are packaged in special four-ply, heat sealed packets to exclude moisture, and then placed in sealed boxes.

Svalbard isn’t merely risk management, it’s practically risk elimination. Unfortunately investors can’t quite do that. We have to assume some degree of risk in order to earn a satisfactory return. The key is to manage those risks carefully so that they are calculated and intentional. Investing in quality companies and bonds, paying close attention to valuation, properly diversifying, and taking a long-term approach is our Svalbard.

Jamie Hyndman

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