STRENGTHS AND BENEFITS INVESTMENT WOOD

Wood is the third largest traded commodity in the world after oil and gas (€ 200 billion / year). While the production of raw gas became scarce, many opportunities to invest in forestry Invest In Timber

The World Bank Commodity Price Index shows that there are only 3 commodities increased resale value over a period of 10, 20, and 100 years: Gold, Oil, and Wood. While gold is still has a very good performance, but the performance was not too good on the Gold long periods of time, namely, between 1979 and 2004. As well as oil prices are likely to fluctuate because of speculation in the days to come. 

Comparison HTRG underscores, timber investment with the best quality outperforms the S & P 500 in the last half century, both in terms of profits and volatility. And portfolio combined with wood works better than the portfolio without wood.

Over time, wood grows with increasing volume; increased volume grew into a few categories of valuable (from biomass becoming HTI-industrial forests wood that has been sawed plywood) and each unit of these categories you can enjoy in a period of rising prices time. (When people raise sheep he would get the lamb on a continuous basis from time to time, but they will not turn into cattle and sheep prices will probably remain. When someone manages whiskey shop over the years, the value of whiskey that has been turned into a long complicated on category is better, but it will not increase the content / volume of whiskey it. Gold will not turn into platinum or increased weight).

Wood is the only investment that grows by itself, which grow naturally, and is not affected to any economic situation. Therefore wood stocks likely to be in the best performance when stocks and bonds generally suffer from depression. And even timber prices are not too affected by the economic downturn than most other assets. You can delay the harvest of wood, with the confidence that your assets will carry benefits (two-fold) in the near future, another case on the production process of copper mines or oil wells you can not put it off, because if you delay then you do not produce a profit.

 
 
Maybe you are one of the few people who find investing in innovative technology-superior only for a while, but the investment will give the wood a different quality and for long-term security. Wood is a wonderful investment and investment were relaxed. And be sure you have a product that is competitive with high demand in 30 years.

Timber business is one of the long term business with the possibility of very high profits, over the last century timber demand is increasing along with the increasing world population. Economic changes such as China and India are now a nation of consumers (consumer market) in recent years because it impacts on timber markets is increasing. It is confirmed that there is a relationship between population growth with demand for timber. There is no prediction of the shrinkage in demand for wood to see the world in the next 30-60 years. On the other hand there is no doubt that the production of natural tropical forests will decline, according to REIDD because there is an incentive not to harvest timber from the World Organization Board, law enforcement, reforestation. But preserving forests around the world will be, because of the volume and the planting will not be able to keep demand in line with the rapid world population growth, compensation for forest planting can be harvested within a period of 25-30 years.

Wood is a renewable source / renewable. But you not only avoid adding CO2 but you can also absorb CO2 generated by its investments of others. Therefore, timber investments offer you to protect the world's climate with a very nice profit projections for the long term.     

Related Post

No comments:

Post a Comment