Are you worried about inflation?? You should be. At some point all of the new money created by Quantitative Easing (QE) will hit the real economy. You can protect yourself with an inflation hedge using GreenWorld's specially designed real asset investments.

Friday, September 7, 2012

Forestry Investments Make an Excellent Hedge Against Inflation

Forestry - an excellent investment and inflation hedge

As the European Central Bank (ECB) prepares to print unlimited amounts of money via QE, it is worth considering what types of investments offer the best hedge against inflation?  One asset class that offers an excellent inflation hedge is forestry investments.  There is generally a close correlation between timber prices and overall prices in the economy, and in that sense forestry can act as an excellent inflation hedge.  

One option very much worth considering is GreenWorld's European forestry investment.  This forestry investment is located in Germany, and involves a hardwood tree called Paulownia.  There are two reasons to consider this forestry investment:

1) First, the fantastic long-term returns associated with hardwood timber investments as compared to softwood timber investments such as pine. A m3 of softwood pine lumber for example goes for € 60- € 80/m3 or $86 - $115/m3 . Paulownia, by contrast, for about € 400- € 500 or $575 - $720/m3.

2) Second, not only are there fantastic long-term returns associated with Paulownia timber, but the fact that the entire project and forestry plantation are situated in the highly stable country of Germany makes this an extraordinarily attractive project in which to invest. The stability and rule of law that Germany possesses is unparalleled.

Please contact us at info@greenworldbvi.com to learn more.

2 comments:

  1. Well, it’s good to hear that there are other ways to prevent inflation from growing. It can be such a headache to us thinking about its impact on our purchasing power. Anyway, I learned that aside from being a hedge against inflation, forestry investment is able to sustain the demand for timber product.

    Sabrina Garza

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