Oxstones Investment Club™The great economic recession has forced people to think about alternate investment plans that make investing risk-free and secure. Alternative investment plans like forestry investment is considered to be the most safest and responsible venture that ensures the sustainability of environment besides giving high returns. The growing demand on a worldwide basis has forced investors in large numbers to endow good amount of capital in this particular sector. The consistent returns being high, it is an attractive option for investors who want to gain on the long run. The gradual development of this venture has shown some interesting signs of growth in the coming years.
Some Interesting Forecasts
Timber investment is playing the pivotal role among all segments of alternative investments. And if all these ventures are taken into account then the tendency of growth is remarkable. Some market researchers predict that the word ‘Alternative’ in alternative investments will actually become useless because the massive growth that these ventures are facing will slowly turn them to regular investment schemes. But the features will be alike. The returns will be high as usual, and the risk factor will be nominal just like today. As a conclusion, it is easily understandable that timber investment venture is going to be highly profitable in the coming years.
Forestry investment on the rise
Understanding the Demand and Supply of Timber
a) Low Supply – 96% of all forest products consumed worldwide come from original and indigenous forests, whereas 6% comes from plantation forests. Factors like illegal shedding and consumer needs are taking away natural forests covers every day. So, the future supply of forest products depends on certain aspects. They are:
- An effective sustainable plantation on the remaining original forest land.
- Increment in the area of plantation forest.
There is an estimated 2700 million hectares of the original forest cover left in this earth which is being preserved by sustainable plantation. So automatically the responsibility of the bulk supply is gradually being shifted to plantation forest. This is the reason the demand for plantation timber is rising day by day.
b) Growth in demand – The factors that affect the demand for timber is:
- Increase in population – Population is an ever rising aspect. The more the population, the more the demand.
- Wood- an ever useful material- There is no alternative of natural recourses like wood. It is a material of multiple use and importance.
Increase in the Price of the Alternates
Timber doesn’t have any alternate as such. But there are certain materials like steel and aluminum that are considered as substitutes. These materials do have wide usages, but their prices are increasing considerably. These are the reasons for which the demand for timber will always be the same, benefiting the investors to a large extent. And as a result, alternative investment plans like these are on demand.
New Objectives formulated by Companies
Keeping the rising demand in view the forestry investment companies are taking up new strategies. They are:
a) Increase the plantation forestry land systematically.
b) Bring in more investors or group of investors to facilitate investments.
c) Taking a more environment friendly approach from business approach.
d) Ensuring Risk free return to the Investors.
e) Meeting the world wide demand of timber by protecting the natural forests.
Forestry Investment reviews done by Avacade, show a consistent rise in this venture, in the coming years. Forestry investment is surely going to be the big investment plan in the near future.
Tags: alternative investment, asset allocation, forest products, Forestry Investments, hard assets, Investment reviews, non-correlated assets, plantation forest, real assets, retirement and savings, supply and demand of timber, Sustainable investments, timber investments