Points To Consider When Choosing An Agarwood Investment Company

Points To Consider When Choosing An Agarwood Investment Company

The high returns of forestry investments in recent years have made such propositions much more attractive to a wider range of individuals and pension companies alike. 

As more traditional markets are burdened by volatility and low returns, the demand for more innovative prospects that are not correlated to the general stock exchange or bonds is becoming much greater. However, in finding the hidden opportunities that are available, such as investment in Agarwood, it is essential that every investor ensures the product provider chosen has industry recognised credentials.

Look For Recognised Affiliations

Though a company may operate in a niche market, a previous positive reputation is essential when making the decision to invest. By choosing a company that has a track record, it is possible to experience more certainty that the investment is a viable and profitable one.

Though many Agarwood Investment Companies are in their infancy, look out for organisations that are part of much larger corporations that provide the experience and backing that will generate more stability for the investment as a whole.

Be Specific In Agarwood Plantation Requirements

As investments can be made from anywhere in the world, it is vital that the people on the ground managing the Agarwood plantation have the expertise and know how to ensure that all returns are fully maximised. Though it is possible to choose an individual plantation manager to work on site, it is usually more beneficial to find an Agarwood plantation which has a qualified management team in situ who are experienced in the area and have a stronger vested interest in its overall success.

In the case of Oud production, most plantations will manage the entire process from the initial sowing of the seeds through to oil extraction. Only by selecting a team with a proven history of high quality oud oil production will it be possible to have confidence in the plantation and maximise the investment made. Furthermore, look at the location of the plantations themselves. Ensure it is in an area where the trees that create the Agarwood are going to thrive, native to its surroundings. This should be a warm, humid environment such as Thailand and Cambodia where the climate is perfect for this type of tree to grow. 

Ensure that the plantation is question has certification by CITES (the Convention on International Trade in Endangered Species of Wild Fauna and Flora) or a related accreditation which will allow it to market the Agarwood and resulting Oud oil across the globe and achieve the best possible results and grading.

Look For Guaranteed Investment Return

Due to the massive demand of Oud oil, many plantations requiring investment will offer a guaranteed rate of return. The companies seek development capital to expand the plantations and once the trees are ready for oud oil extraction, they will purchase the trees back from you, the investor. Look out for guaranteed minimum returns of 72% over a medium term of 6 years to achieve overall Capital Growth in such a rapidly developing and sustainable market.

For further information please contact Silvinvest. We have exclusive agreements in place with well respected agarwood and oud oil prodcuers to market their investments. You can book a telephone enquiry session or request a brochure using our appointment booking widget located top right.Investments can be made directly for international clients (including UK) or via a Self Invested Personal Pension (SIPP)for UK only investors.