A recent article advocating the selling of gold and the buying of timber as an asset class, has been welcomed by FRA.
Bainbridge Island, WA, January 18, 2013 – A recent article advocating the selling of gold and the buying of timber as an asset class, has been welcomed by Forestry Research Associates (FRA).
The article, written by Carl Delfield, the senior analyst at Investment U, claimed that although gold has had a “good run” it is timber that is looking like the big winner in 2013 for those interested in alternative investments.
Mr Delfield bases much of his argument on the fact that the price of lumber has outperformed the S&P 500 over the past century and is much less volatile at the same time. Prices have risen by an average of 5 per cent per year and timber is less affected by wider economic trends. It is, therefore, an attractive proposition in the wake of the financial crisis, which wiped millions from certain stocks and shares portfolios over night.
This long-term performance, together with its surging prices and demand right now, is getting investors excited, claimed Delfield. FRA, a research and analysis consultancy specialising in forestry investments, claims that the US housing recovery and the ongoing growth in the Far East and India are largely to thank for the growing demand for sustainable timber.
“Sustainability is the key, though,” added FRA’s analysis partner, Peter Collins. “If you are going to invest in timberland, make sure its sustainably managed – so there is always new growth coming up to replace the timber being harvested.” FRA claims that this is not only the ethical option, but the most potentially lucrative as sustainable timber is far more likely to be used in large developments these days – particularly ones paid for by governments.
FRA supports ethical investment in eco-friendly projects, such as the plantations run by Greenwood Management. The plantations grow fast-growing non-native species, such as teak and eucalyptus.
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394