FRA
has welcomed a report from Investorplace.com, claiming that timber
prices are not set to fall in 2013, making the asset class a good bet
for investors looking to diversify this year.
Seattle,
United States, January 8, 2013 -- Forestry Research Associates
(FRA) has welcomed a report from Investorplace.com, claiming that
timber prices are not set to fall in 2013, making the asset class a
good bet for investors looking to diversify this year.
There
are several reasons that the article gives for retaining faith in
timber prices in the US. Writing for Investorplace.com, Aaron Levitt
says, 'Driven by several forces - including a rebound in the US
housing market, expanding pulp sales and a few issues with Mother
Nature - timber became the commodity du jour during the last year.'
He
goes on to talk about the gains in the US housing market that are
expected this year. Increases in house prices in 2013 will be the
first since 2006 and, in response to this, new home building is up by
an impressive 42 per cent on a year ago.
This
increase in housing starts is the main reason for the increase in
lumber prices, according to Levitt, and FRA has welcomed this news.
Its analysis partner, Peter Collins, said, "The knowledge that
42 per cent more homes are being built than a year ago in the US is a
strong indicator that timber prices will be on the up in 2013 and
beyond."
"Now
is great time to invest in timber and timberland for a medium and
long-term investment that is likely to diversify a portfolio against
risk and act as a hedge against inflation," he went on to say.
To
illustrate this point, the price of framing timber, which is used in
new homes, has increased by 38 per cent in 2012 to around $373 per
1,000 board-feet.
FRA
supports a wide range of sustainable, environmentally friendly
alternative investments, including investing in sustainable
plantations of non-native trees in Brazil and Canada. Investments in
these kinds of plantation can be taken out through firms like
Greenwood
Management.
About
Forestry Research Associates
Forestry
Research Associates is a research and advisory consultancy that
focuses on forestry management, sustainability issues and forestry
investment around the globe.
Media
Contact:
Peter
Collins
Forestry
Research Associates
620
Vineyard Lane
Bainbridge
Island, WA 98110
(206)
316 8394
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