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  • Timberland Investments

    2010 - 08.31

    A timberland investment is essentially an investment in a forest. This can be a natural old growth forest or a man made forestry plantation. More often it is the latter that is chosen as a timberland investment. In the world of finance these types of investments provide a natural way to diversify holdings.

    There are a lot of advantages to timberland investments, to begin with there is the potential rising demand for specific wood types such as eucalyptus, also as the trees mature they gain in value. In addition there is also the routine rise in value of both trees and land.

    According to finance experts a timberland investment can have a negative correlation to some paper investment options. In other words investors can balance gain and loss situations by pursuing timberland holdings, which act as a kind of natural ‘hedge’.

    As with any other kind of investment investors should display due diligence when checking that the value of what they are buying is just as high as what they are paying for it. For a reliable and trustworthy forestry management specialist it would be worth having a look at Cambium, Greenwood Management and the Phaunos Timber Fund. Each of which have an excellent reputation for safty and security of investments.

    There are many reasons for choosing to invest in a timberland; some investors are betting that over time, rising demand and value will produce steady, moderate gains. Others are hoping that the value will suddenly spike and produce quick, high returns. However, regardless of reason, professionals have pointed out that diversification of holdings including timberland shows durability over time, especially in volatile markets.

    The Timber Investment Blog is sponsored by Greenwood Management. For more information on investing in Timber please click here.

    One Response to “Timberland Investments”

    1. Thanks for the informative post. I look forward to reading more.

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