How is Teak an Investment?
With all of the talk of the many benefits of an investment in teak, there is still a crucial question left that many of you may be asking yourselves. This question is: How exactly is teak an investment? The answer to this question is central to understanding prospects of an investment in teak. Luckily, the answer is very clear.
Teak, or as it’s known by its formal name tectonagrandis, is a hardwood tree native to southeast Asia. Today, it grows naturally in only 4 countries in the world, Myanmar (former Burma), Laos, Thailand and India. However, the harvesting of old-growth teak in these countries has seen a serious decline due to the massive over-logging of teak in these countries that has depleted the natural supply. As a result, teak plantations have started to pop up in other warm-weather, tropical climates of the world. In Africa, teak is grown in such countries as Ghana and the Ivory Coast. In Latin America, teak is grown in countries such as Panama, Ecuador and Nicaragua.
Teak has many amazing qualities, such as being resistant to rot, fungus, fire and termites.It has an especially beautiful, honey hue, and is widely sought after and used to make such things as high-quality outdoor furniture and boat decking.
An investment in teak, simply put, is an investment into a tree. An investment in teak means that you will own your very own plot of land, complete with the valuable teak trees that grow on it. It is as simple as that.
In fact, the simplicity of a teak investment is one of the things that makes it such an attractive investment opportunity.
Unlike investing in stock of a company, there is little work that needs to be done when investing in teak. Consider all of the work that goes into making an investment into a stock. You need to research the market. Who are that company’s competitors? Do you think they can reasonably compete? What is the health of the market like in general? Are stock indexes going up or down? And what about the individual company itself? Is it managed well? Do they have effective marketing strategies? Is the management of the company ethical and aligned with your own ethical standards? These are all things that one needs to consider before making an investment in a stock. And not only do these things need to be considered when deciding to make the initial investment into a stock, but then these things all need to be continuously monitored to make sure your investment is sound.
Now consider the simplicity of investing in teak. Teak is a unique tree. There are few substitutes for teak, due to the unique qualities that the teak wood possesses. In addition, there is nothing to worry about in terms of marketing and the like. Teak is highly in demand, and as soon as someone can say they have quality teak to sell, there are a multitude of buyers waiting. Basically, with an investment in teak, the teak seeds get planted and then grow and grow and grow, and you, the investor, don’t have to do any further research or worrying.
One of the best parts of an investment in teak is that you can watch your investment grow, literally. Tours of the teak plantations in Panama and Nicaragua are run frequently, and teak owners are encouraged to attend these tours. You will be able to watch the progress, as your teak trees go from small seedlings in a nursery, to young saplings being planted in the plantation, to massive, powerful trees, reaching heights of 40ft. tall.
When the teak is fully grown, at approximately 25 years old, it is time to harvest. This is when the years of growth finally pay off. Teak is an incredibly valuable wood; in fact, it is one of the most valuable hardwoods in the entire world.
So, in conclusion, to those who ask how exactly teak is an investment, the answer is quite simple: an investment in teak is an investment in a tree. As the tree grows, so does your investment. When the trees are fully grown, you will have a plot of massive, 40ft. trees made up of some of the most valuable wood in the world, which is currently in high demand. It is one of the simplest investments you can make.