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Timber prices hit two-year high
19/02/2010
Timber prices in the US market grew to a new two-year high last month, despite knock-backs in other commodity markets in response to the rising strength of the dollar.
The price of lumber has increased to its highest point since 2007. The price for 1,000 board feet is now $280, a figure that has not been exceeded since August 20007.
In addition, timber prices are up 60 per cent on last year, which puts it ahead of the equities market – making it a great bet for anyone looking for a lucrative place to put their money.
The reasons for the rise are uncertain. It could be down to the fact that less timber has been felled during the recession – leading to shortages in supply. Or it could suggest that the housing market is about to turn a corner, with prices rising in preparation for the next boom.
Either way, the forestry sector is a good bet for investment. Another reason to opt for investment in forestry is that any profit made over time as the trees grow, is not subject to capital gains tax, as other investment profits are.
The price of lumber has increased to its highest point since 2007. The price for 1,000 board feet is now $280, a figure that has not been exceeded since August 20007.
In addition, timber prices are up 60 per cent on last year, which puts it ahead of the equities market – making it a great bet for anyone looking for a lucrative place to put their money.
The reasons for the rise are uncertain. It could be down to the fact that less timber has been felled during the recession – leading to shortages in supply. Or it could suggest that the housing market is about to turn a corner, with prices rising in preparation for the next boom.
Either way, the forestry sector is a good bet for investment. Another reason to opt for investment in forestry is that any profit made over time as the trees grow, is not subject to capital gains tax, as other investment profits are.
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