Seattle, WA 11/17/2012 2:00:34 AM
Forestry can help to Diversify Portfolio, says FRA
A recent article from GreenWorld BVI, calling for gold investors to supplement their portfolios with agriculture and forestry investment, has been endorsed by FRA.
A recent article from GreenWorld BVI, calling for gold investors to supplement their portfolios with agriculture and forestry investment, has been endorsed by Forestry Research Associates (FRA).
The main reason that GreenWorld gives for diversifying away from solely gold investment included the fact that gold does not pay an income until it is sold. It is also a "faith-based investment", as GreenWorld explained: "Gold is largely an economically unproductive asset."
Agriculture and forestry are alternative asset classes, as gold is, and they also tend to keep their value during times of economic turmoil and offer a buffer against inflation, like gold. However, through investing in managed forestry and agriculture projects, investors can also enjoy regular incomes. An example is the projects run by Greenwood Management in Brazil, claims FRA.
These projects are intended to offer mid-to long-term investment options for those who want to buy up their own piece of sustainable forestry. Through working with Greenwood Management, investors enjoy the benefits of having their own managed forest land, while receiving income in the form of payouts when trees are harvested in a cyclical process. The timberland is managed to ensure there is new growth to replace mature trees that are cut down and sold. Trees that are sold generate returns for investors, who also enjoy a pay out when their investment reaches maturity.
Investing in forestry is a good option for any risk-averse investors who want to diversify their portfolio further. Spreading investment between several different asset classes offers good protection against risk and forestry is one of the most risk-averse assets. This is because timber simply carries on growing in size and value all the time, so if the market conditions aren't right when investors want to sell, they can simply hang on a little longer and sell a larger product at a higher price.
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.
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394