The Abundance Engineer March 2011 - Real Assets

Real Assets

While it's no secret that I am bullish on Gold & Silver I believe there are many other real assets which will make investors extremely wealthy in the coming years. 

The Commodity bull market and the worldwide rush for natural resources and real tangible assets creates a multitude of opportunity right now. 

I have promoted agricultural investments in the past and continue to do so. However, one investment I haven't mentioned and am very keen on is Forestry. 

2011 is the International Year Of Forests. 

The livelihoods of 1.6 billion people depends on forests. 

Trade in forestry products was estimated at $327 billion in 2004. 

Forests are home to 300 Million people around the world. 30% of forests are used for production of wood and non wood products. 

Forests cover 31% of total global land area. 

Forestry in Europe is now reaching an average of €65/m3

Imports are increasing. 
Of course with the impact of the credit crunch and the slowdown in demand. Forestry across Europe has been heavily oversold. 

Within the seed of every crisis lays an opportunity and right now I believe is the best time to acquire forestry as a buy and hold investment. We have seen the huge boom in Gold, Silver, Platinum, Palladium, Lithium, Cotton, Wheat, Corn, Soybeans, Sugar, Oil and numerous other commodities. Lumber is primed for a big move to the upside. 

Among the firesale of Irish State Assets is Coillte the highly profitable Irish State Forestry company. It is widely rumoured that the International Forestry Fund is out to acquire it. The Chairman of the fund; Bertie Ahern has been negotiating with China Investment Corporation. 

Over the past number of years the Chinese have been acquiring mines in Australia, Canada and Africa. In the Philippines they own virtually all the mills.

While I do not see great value in Irish Forestry unless you have 1.2bn to spend an opportunity to acquire mature forestry has presented itself in Bulgaria. 

I traveled there recently to evaluate a Forestry Investment. I met with Government officials and I am happy to say the investment looks very attractive. 

We are looking for one investor with €100,000 or a group of Investors with a minimum of €10,000 each to purchase a 64 hectare forest in Troyan, Bulgaria. The forest has 60% mature beach and oak (130 years old). Our report shows there is 7000m3 of matured wood. I spoke with the State Forestry Agency and a licence to cut will be provided if required. 

If you do your maths based on an average price of €65/m3 then the value of the wood alone in the forest is worth €455,000. 

The forest is already in a private company and the purchase price is €100,000. That's €650 an acre. There are many options available with this investment. It would be a perfect investment to sell on to a Forestry fund a growing number of which are being set up right now. 

Contact me for more information. 

Silver 

Silver is up again this morning on Japan and the Middle East.     

Ways to Invest In Silver    

You can buy Physical Metals. Call us  

Subscribe to a coin buying program.  

Open an online brokerage account.   

Open a spread betting account 

Happy investing,

Robert McManus
The Abundance Engineer

Email: rob@theabundanceengineer.com
Web: www.theabundanceengineer.com