It has become increasingly clear in recent years that more and more people are looking to the ethically and financially sound benefits that timber investment provides. While some are still sceptical that ‘trees’ can provide anywhere near the benefits of other, more traditional commodities, the number of people that are now open to the new opportunities available is higher than ever, and it is easy to see why.
While volatility in the stock market is leading to severe fluctuations in the value of some major organisations and commodity investments both in the UK and across the globe, the stable rise in the value of timber has provided positive returns for its investors that have avoided the pitfalls of the recent recession and continued offering healthy returns across the sector.
As a raw material for furniture production and within the building industry, hardwood is a sustainable resource that has its place carved out for many years to come, and with investment woodlands providing a renewable and reusable source for the global market, any investor who includes such an opportunity within their portfolio is likely to see significant projections both in terms of short and long term growth.
The demand for high quality hardwood is higher than ever and, as the global population expands, the demand for this essential resource is set to increase in line with this general rise in populace which is projected by the United Nations to be growing by up to 55% before the end of 2050.
Most financial experts will advise you that one of the best ways to find a solid investment for the future is to look at performance in the past, and when you see that the value of timber has consistently risen above the global inflation rate, you gain confidence that your savings are going to build and provide the returns you require to make your future more comfortable.
Though many commodity investments may be difficult to comprehend, to understand the process of the timber investment, you simply have to put a seed in the ground and watch it grow. As each hardwood tree grows and expands, so does the value it creates, which is directly reflected in the wealth you hold within the investment. There is no impact from the value of the Dow or any decline when profits are announced; the tree simply carries on growing, as does your capital. In fact, the value of timber has risen throughout three of the four market collapses this century and is the only asset on record to have done so.
And when you have accepted the financial benefits of such an investment, the environmental advantages that are also obtained make timber investment such an attractive proposition. By protecting the natural forests of the earth and providing a greener and healthier environment for each and every person, it is easy to see why so many people are now including forestry investments in their pension funds, savings plans and family trusts for an environmentally friendly investment that is going to provide for both their moral and financial futures.