A
recent article by Wyatt Investment Research published by Nasdaq.com
discusses claims that timberland could be a better long-term
investment option than gold. The report has attracted much support
from FRA, a forestry investment analysis group that believes
timberland is a strong and reliable long-term asset class.
Seattle,
United States, November 14, 2012 -- A recent article by Wyatt
Investment Research published by Nasdaq.com discusses claims that
timberland could be a better long-term investment option than gold.
The report has attracted much support from Forestry Research
Associates (FRA), a forestry investment analysis group that believes
timberland is a strong and reliable long-term asset class.
The
article from Wyatt Investment Research says that one of the main
reasons trees are a great long-term option is that healthy trees
physically grow by around 4 per 6 per cent in value each year. The
article concludes that timber is indeed "better than the stock
market as a long-term investment." It then asks whether it can
compare to a commodity like gold for long-term returns on investment.
Between
1991 and 2010, timberland investors saw returns averaging 11.16 per
cent per year, with gold investors seeing gains of just 7 per cent
each year during the same period. However, the article claims that
people buy gold and timberland for very different reasons. "It's
right that people buy gold primarily to protect the value of their
investments and protect their cash from wider economic factors, such
as inflation," explained FRA's analysis partner, Peter Collins.
"However,
timberland can offer these benefits as well, as timber tends to
emerge from recessions and other economic crises relatively
unscathed."
One
of the main benefits of investing in timber is the fact that the
owner of the trees does not have to sell if conditions aren't quite
right when the trees reach maturity. If timber prices are low, they
can continue to grow in size and in value until the market is just
right. As a result, investing in timberland can be one of a least
risky strategies during tough economic times, added Mr Collins.
FRA
is a research and analysis consultancy focusing on forestry
investment. It supports a range of forestry investment schemes, such
as those run by Greenwood
Management in Brazil and Canada.
Media
Contact:
Peter
Collins
Forestry
Research Associates
620
Vineyard Lane
Bainbridge
Island, WA 98110
(206)
316 8394
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