FRA agrees that Timberland is a good Long-Term Investment
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.
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394