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.
Seattle, United States, November 16, 2012 -- 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 GeernWorld 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,
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
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Bainbridge Island, WA 98110
(206) 316 8394