Timber is still not considered as a viable means of investment by a few investors. But, it is time investors look for investing options other than the traditional options. The global stock markets have been significantly affected by the economic downturns, in the past few years. On the other hand, timber funds have shown remarkable resilience during those times. Timber investment is more resistant to economic uncertainties as compared to traditional investment options like stocks, gold, real estate and bonds. Asset management companies like Ethical Forestry are there to take care of your timber investment and provide you steady returns.
Overview of Timber Investment:
The primary source of returns for timber investment is the growth of timber trees. This investment option is not affected by uncertainties and downturns in the economy since the growth of trees has no relation to these issues. The growth of timber also has a positive correlation with inflation, offering it a bit of hedge against inflation. The market value of the trees increases with their growth. So, returns may be influenced by factors like land appreciation, changes in timber price, and other minor components like water and mineral extraction and recreation licensing.
There are certain differences between timber and other agricultural products. A major difference is that timber harvest needs not to be done annually. Instead, the harvest is carried out at a time when timber demand is high and the market is also growing. Thus, the harvest time is quite flexible in this case.
Investment Cycle:
Companies like Ethical Forestry enable you to invest in timber producing trees. The aim of its timber investments is to generate the highest number of fully mature trees, for yielding maximum timber and hence create highest returns for the investors. To achieve this goal, the trees are periodically thinned in a process referred to as “thinning harvests”. Every single harvest in this process generates valuable wood, which in turn generates the returns for investors.
When you make a timber investment, you need to purchase a certain number of new saplings. These saplings grow in the nursery of the asset management company. After the saplings have grown a bit, they are moved to a plantation, where the plants are replanted closely so that they contend for the canopy light. This leads to the growth of trees in a straight and tall manner.
The first harvest commences after 4 years, the second one after 8 years and the third one after 10 years. After completion of 12 years, the remaining timber trees are harvested, and the investment ends. When the trees are sold, significant revenue is generated, which is given to the investor. Ethical Forestry assures that the investors receive steady returns for their timber investments.
Timber investment is gradually being seen as a profitable option to invest. It is not affected by economic downturns, unlike the traditional investment options. It is associated with lower risks and higher returns. Investors are also heading towards investing in timber to diversify their investing portfolio.
Overview of Timber Investment:
The primary source of returns for timber investment is the growth of timber trees. This investment option is not affected by uncertainties and downturns in the economy since the growth of trees has no relation to these issues. The growth of timber also has a positive correlation with inflation, offering it a bit of hedge against inflation. The market value of the trees increases with their growth. So, returns may be influenced by factors like land appreciation, changes in timber price, and other minor components like water and mineral extraction and recreation licensing.
There are certain differences between timber and other agricultural products. A major difference is that timber harvest needs not to be done annually. Instead, the harvest is carried out at a time when timber demand is high and the market is also growing. Thus, the harvest time is quite flexible in this case.
Investment Cycle:
Companies like Ethical Forestry enable you to invest in timber producing trees. The aim of its timber investments is to generate the highest number of fully mature trees, for yielding maximum timber and hence create highest returns for the investors. To achieve this goal, the trees are periodically thinned in a process referred to as “thinning harvests”. Every single harvest in this process generates valuable wood, which in turn generates the returns for investors.
When you make a timber investment, you need to purchase a certain number of new saplings. These saplings grow in the nursery of the asset management company. After the saplings have grown a bit, they are moved to a plantation, where the plants are replanted closely so that they contend for the canopy light. This leads to the growth of trees in a straight and tall manner.
The first harvest commences after 4 years, the second one after 8 years and the third one after 10 years. After completion of 12 years, the remaining timber trees are harvested, and the investment ends. When the trees are sold, significant revenue is generated, which is given to the investor. Ethical Forestry assures that the investors receive steady returns for their timber investments.
Timber investment is gradually being seen as a profitable option to invest. It is not affected by economic downturns, unlike the traditional investment options. It is associated with lower risks and higher returns. Investors are also heading towards investing in timber to diversify their investing portfolio.