Timber investments are unlike any other commodity. They have been shown to yield more stable returns than the stock markets, they often outperform other commodities in high and low inflation environments, and unlike real estate, timber land is limited and can’t be overbuilt. Timber is essentially a long term, low risk investment, and without wishing to resort to puns, can be a great growth market.
Better yet, the world demand for timber is growing, and could even double by 2050, according to the United Nations. This rising consumption (high demand, low supply) will only drive the prices of timber higher in the next three years, while the costs of running a timber company—factories and warehouses—will remain constant.
As the global availability of timber diminishes due in part to demand, and in part to environmental restrictions and land developments, investors in sustainable reforestation will see good returns. Through tree farming and managing natural forests, investors’ gains will stem from biological growth, the appreciation of timber and land prices, and in many cases, the rebuilding of socio-economic infrastructures where these farms employ and sustain communities. Timber investments are also enjoying more success as their certified status allows them to benefit from a worldwide crackdown on illegal logging and the trade in illegally-sourced timber.
Our current timber projects involve semi-mature trees, from which income is derived during ‘thinning’ years. Investment in our timber projects also opens up the opportunity to invest in carbon offsetting in the future, maximising the positive impact on the environment. Due to the infrequency of semi-mature timber plantations coming to the open market, the opportunity to invest is limited. We only offer investments which have passed our rigorous due diligence process.
While timber is not a new commodity, it is becoming a much more popular one – our bamboo investment is taking advantage of the hugely increased demand for one of the most versatile timber products on the market. However, like any investment, money will be made through good management and assessed risks. Our due diligence process ensures we only offer the ‘best of breed’ investments to our clients
At Emerald Knight, we minimize investment risks by taking proper due diligence — conducting research and onsite inspections and well as making market comparisons and analysis reports — for your investments.
Browse our information and sustainable forestry projects, to find out more about timber investment opportunities.
07th January 2013
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