Alternative Investments are Actually Aggrandizing
Alternative Investments
Traditional investments may be marginal with regard to return at present, but alternative investments can still provide growth opportunities in the case of forestry, agricultural, and precious metal investments.
When considering the laws of supply and demand, it only makes sense that one of the best investments of 2011 would be timber. As more and more trees are cut down in order to accommodate the world’s growing urban and suburban sprawl, those forests maintained will continue to grow in value along with the trees which inhabit them.
According to recent studies, in excess of thirteen million hectares of forest are lost due to global deforestation each year. However, companies such as Global Forestry Investments (GFI) are committed to protecting natural forestry while allowing investors to profit. According to world news timber produced an average compound return of 16% between 1987 and 2006. Clearly, these statistics indicate that timber proved to be a more sound investment than many more traditional investments during the given period.
In a similar manner, agricultural land is another vital resource which is disappearing in the wake of global expansion. As a result, while the need for food and biofuel grows along with the population, the ability to cultivate is inhibited.
Much as is the case with forestry investments, agricultural investments have the potential to outperform more standard assets such as bonds and cash. Additionally, agricultural investments allow numerous options for diversification.
At present, while the prices of many stocks seem to be dropping, or at best, fluctuating, the prices of many agriculturally-based stocks have demonstrated significant increases. For example, the holdings of the fertilizer producers Patash of Saskatchewan (POT), Mosaic (MOS), and Agrium (AGU) have more than doubled since the beginning of 2007.
Finally, with the soaring prices of gold, precious metals may not even be viewed by some as alternative investments. Nevertheless, investing in gold, silver, and other precious metals has proven to be lucrative in the recent short-term, and a secure investment for the long-term.
Alternative investments are a growing trend and have proven to be lucrative for many investors. As always, be sure to research any investment before you make it with the help of the experts at Compare the Financial Markets. Their expertise and your openness to alternative investments such as forestry, agriculture, and precious metals may lead you to some of the best investments of 2018, and allow you to watch your portfolio grow before your eyes both literally and figuratively.
Choosing the best alternative investment can be difficult, so careful consideration is crucial. Your questions on best alternative investments will be answered by our industry experts, free of charge.
Best Alternative Investments.
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