Showing posts with label Invest. Show all posts
Showing posts with label Invest. Show all posts

Wednesday, 27 February 2013

A Brief History of Scented Wood and Oud Oil

I wanted to share this article as it provides an insight into the historical trade and reference that is interesting and current.

http://www.saudiaramcoworld.com/issue/200006/the.hidden.history.of.scented.wood.htm


Written by Eric Hansen
Several years ago, in the perfume and incense market in the old city of Sana'a in Yemen, I caught sight of a large apothecary jar full of wood chips. The jar sat on a dusty shelf, tucked away in a dark corner of the stall owned by Mohammed Hamoud al-Kalagi. When I asked him to show me its contents, he placed the jar on the front counter and pulled out a chip of wood. Mohammed called the wood 'ud (pronounced ood), a name I did not recognize, but it looked very familiar. I could hardly contain my growing sense of excitement as I examined it closely.
Mohammed placed a tiny sliver of the wood on the end of a lit cigarette. Within moments we were inhaling a rich, sweet, woody fragrance that I had first smelled in the Borneo rain forest 15 years earlier. At that time, I was traveling with a group of nomadic hunter-gatherers known as Penan. We were looking for herbs used in traditional medicine, but one day the Penan cut down a tree and collected pockets of fragrant wood from within the trunk and branches. They called these dark patches of wood gaharu. I rubbed a small piece of gaharu between my palms to warm it, and it smelled like cedar and sandalwood, but with subtle fragrance notes of roses and balsam. For years I had wondered what the wood was used for and where it was sent after leaving Borneo. The Penan thought gaharu might be used in Chinese medicine, because it was the upriver Chinese traders that bought it, but apart from that, they were mystified as to why anyone would want to buy those gnarly bits of wood.
Mohammed al-Kalagi, who thought that 'ud came only from India, was the first person to help me begin to unravel the long and convoluted history of this scented wood. He told me it was burned as incense throughout the Islamic world, and an oil was extracted from it that retailed for nearly $20 a gram ($500 an ounce) as a perfume.
When I told Mohammed that the gaharu collectors in Borneo considered the wood to have only a modest barter value, he laughed and recited lines that he attributed to the eighth-century Egyptian jurist and poet Muhammad ibn Idris al-Shafi'i:
Gold is just dust when still in the ground.
And 'ud, in its country of origin,
Is just another kind of firewood.
A few days after my visit, I walked through the narrow streets of old Sana'a to the home of Yemeni friends. The family lived in a tastefully restored stone tower house in the Turkish Quarter, and during the meal that night I discovered that 'ud has domestic uses beyond simple incense: A small chip placed amid the tobacco in the bowl of the mada'ah, or water pipe, sweetens the smoke and keeps the pipe fresh. And although 'ud is generally considered more of a man's scent, it is also used by women who place bits of the wood in amabkharah, a small, hand-held charcoal brazier used to scent clothes; it is also used to perfume hair and skin. My host explained that at women's get-togethers it would be considered strange not to pass around a mabkharah of smoldering 'ud or other incense so the female guests could perfume themselves.
"When you walk by a woman on the street and you smell 'ud, you know that she is from a good family," the husband told me. "It is a sign of wealth, good breeding, refinement and status."
Similarly, when Yemeni men congregate, it is customary for them to pass around amabkharah of 'ud. Each man opens his jacket and censes his shirt and underarms, then his face and his mashedah, or head scarf, if he is wearing one. The mabkharah is always passed counter-clockwise, and each man wafts the smoke onto himself and says, "God's blessings and peace on the Prophet Muhammad." 'Ud is burned ceremonially at weddings, too, and the oil is sometimes used to perfume the body of the dead before burial.
In Yemen, the price and quality of 'ud varies considerably: At an average wedding party in Sana'a it is considered appropriate to spend about $30 to $50 by burning 50 or 100 grams (two or three ounces) of one of the less expensive grades of 'ud, but for the well-heeled, 30 grams (a single ounce) of a superior grade can set one back $250 to $300.
Before I left the dinner party that night, my host placed a tiny drop of 'ud oil on the front of my shirt and explained that the fragrance would survive several washings—which it did.'Ud oil is often placed on older men's beards or younger men's jacket lapels so that during the traditional cheek-to-cheek greetings its sweet, woody scent dominates.
Although the southern Arabian Peninsula has been long identified with aromatics, few Westerners are familiar with 'ud, a word that means simply "wood" in Arabic. This obscurity is partly due to 'ud rarity and cost, but it is also a matter of varying taste and differing cultural traditions. During the Hajj, for example, Muslim pilgrims from around the world come to Makkah and Madinah, where many are introduced to the scent of 'ud, which is burned in the Great Mosque as well as in many other mosques throughout Saudi Arabia.'Ud produces a fragrance that is not soon forgotten, and for this reason small packets of 'udchips are a common souvenir to take home from the Hajj.
In various other places in the Islamic world, 'ud is burned to help celebrate the important events of everyday life. In Tunisia, for example, 'ud is burned on the third, seventh and 40th days following the birth of a child, a time when the mother traditionally remains at home while female relatives and friends come to visit.
Throughout Malaysia and Indonesia, 'ud is called by the name I first heard in Borneo,gaharu, a Malay word derived from the much older Sanskrit term agaru, meaning "heavy." The scented wood was given that name because, indeed, a high-quality piece of gaharuwill sink in water. The Susruta Samhita, one of the "great three" texts of Ayurvedic medicine, describes how people of the Ganges plain used smoldering agaru for worship, as perfume and to fumigate surgical wounds. In those times, agaru came largely from the treeAquilaria agallocha, which was found in the foothills of Assam.
In the 16th century, the Portuguese, who were actively trading in Goa, Malacca and Macao, adapted the word agaru to pao d'aguila, or "eagle wood"—which at least had a meaning in Portuguese, though there is no connection between eagles and 'ud. In the English-speaking world today, the most common terms for 'ud are aloeswood or agarswood; this last word preserves a clear link to the original Sanskrit.
The best grade of 'ud is hard, nearly black and very heavy. In general, 'ud becomes inferior as it appears lighter in tone, flecked with diminishing amounts of resin. The only truly reliable way to test for quality, however, is to burn a small bit and evaluate the complexity and richness of the smoldering wood. 'Ud oil can be taste-tested: Touch a bit to your tongue, and a bitter taste points to high quality.
Historians are uncertain when 'ud first reached the Middle East. There are several references to "aloes" in the Old Testament, and estimates by historians of China Friedrich Hirth and W.W. Rockhill put the date as far back as the 10th century BC. This was when King Solomon began trade with the south Arabian Sabaean kingdom, which was already trading with merchants on the Malabar (western) coast of India. (See Aramco World, March/April 1998.) Written accounts of Arab and Chinese travelers and merchants that mention it date to more recent times, approximately the first century of our era, a time of accelerating trade among the Arabian Peninsula, the Malabar coast and China that was made possible by the exploitation of the seasonal monsoon winds across the Indian Ocean. At this time, frankincense and myrrh from Oman and the Hadhramaut region of southern Arabia were being traded in the Far East, so it seems reasonable to assume that a reciprocal trade in 'ud would have traveled on the same maritime routes.
The Chinese role in the 'ud trade has been significant since the Han Dynasty (206 BC-AD 220), when Imperial perfume blenders used it along with cloves, musk, costus-root oil and camphor. Like the Indians, the Chinese named the wood for its density, calling it cb'en hsiang, "the incense that sinks in water." In those days, 'ud was sorted into as many as 20 different grades. Responding to the increasing domestic and international demand for 'ud, Chinese traders ventured into Annam, now part of Vietnam, where they found top-quality trees in abundance. This new source of supply allowed them to become wholesale dealers and middlemen, and to this day they retain this position worldwide.
Arab and Persian traders had established settlements on the outskirts of Canton as early as 300, and a Chinese traveler named Fa-Hien noted the riches of the Arab 'ud traders from the Hadhramaut and Oman who lived comfortably in Ceylon. The Greek geographer Cosmas Indicopleustes, writing in the sixth century, also noted that the China-Ceylon-Middle East trade included large shipments of 'ud.
In his book Silsilat al-Tawarikh (Chain of Chronicles), Zayd ibn Hassan of Siraf (now in Iran) tells of the experiences of two mnth-century traders, one Ibn Wahab of Basra and another named Suleyman. Although they traveled at slightly different times, both reported that the price and availability of 'ud in both Basra and Baghdad was much affected by frequent shipwrecks and by pirate attacks on trading ships. Their roughly similar routes went from the Arabian Gulf to the Maldives, Ceylon, the Nicobar Islands and then on to Canton by way of the Straits of Malacca and the South China Sea. At the time, the round-trip took at least two years, for the traders had to wait for seasonal winds, and customs formalities and the complexities of doing business in China consumed a good deal of time. Hassan relates that in Canton, Suleyman saw Arab and Persian traders playing a board game that appears to have been similar to backgammon: Occasionally the playing pieces were made of rhinoceros horn or ivory, but most commonly they were carved from fragrant'ud.
Reading up on the history of the 12th- and 13th-century Arab-Chinese sea trade, I also came upon the Chu-fan-chi, a trade manual written by Chau Ju-kua, who was a customs official in the southern Chinese province of Kwangtung in the mid-13th century. In the text he mentions that the search for 'ud had intensified to the point that it was being collected from Hainan Island, parts of present-day Vietnam, lands about the Malay Peninsula, Cambodia and the islands of Sumatra and Java. By this time, he observed, it had become an established custom for well-to-do Muslims to wake up, bathe and perfume themselves with'ud smoke before going to the mosque for the morning prayer.
In the early 14th century, Ibn Battuta described a visit to Ceylon where during a visit to Sultan Ayri Shakarwati he was shown "a bowl as large as a man's hand, made of rubies, containing oil of aloes." Ibn Battuta also mentioned that in Muslim lands every 'ud tree was private property, and that the best trees grew in Qamara, or Cambodia. (See Saudi Aramco World, July/August 2000.) In Saudi Arabia today, 'ud kambudi—Cambodian aloeswood—is still usually the most treasured and costly variety.
Isaac H. Burkill, in his 1935 Dictionary of the Economic Products of the Malay Peninsula, described 'ud in scientific terms. It is an aromatic resin deposit found in certain species of Aquilaria trees, especially Aquilaria malaccensis, whose species name recalls the days when the 'ud trade was centered in Malacca and dominated by the Portuguese. Burkill explains that the resin is produced by the tree as an immune response to a fungus (Phialophora parasitica) that invades the tree and, over many years, spreads through it. It is these diseased sections of the tree that are collected by people in the jungles of Southeast Asia.
To better understand the modern trade cycle from Southeast Asia to Middle Eastern homes and mosques, I returned to Borneo and traveled upriver to talk again with the Penan tribesmen who make their living collecting 'ud, which they call gaharu.
The Penan, I learned, recognize seven types of gaharu. To collect it they paddle up small tributaries by dugout canoe, and then climb the slopes of remote mountains to locate the best trees. A gathering journey can take a week or more. Once a likely looking pohon kayu gaharu (a "gaharu-wood tree") has been found, they make a series of shallow, exploratory cuts into its trunk, branches and roots; they cut it down only when they are persuaded the tree has the fungus and will yield a reasonable amount of good gaharu. If the tree contains only low grades of gaharu, they will often let it grow for another few years before retesting it. If they do decide to cut it down, they will spend days extracting the gaharu and cleaning it with smaller knives. Traditionally, the Penan used gaharuthemselves to treat stomach aches and fevers, and as an insect repellent, but now they sell or trade all they find.
In the backwaters of Borneo, the Penan sell the very best gaharu for about $400 a kilogram, or approximately $12 an ounce. They usually sell to local Chinese traders who stockpile it until they have enough to send to wholesalers and bigger middlemen in Singapore. The Penan claim that gaharu is getting more difficult to find because large-scale logging operations have destroyed many of the hill forests where the gaharu trees are found. If a Penan group has good luck, it might collect a kilo (35 oz) of average-quality gaharu in three or four days—but it is increasingly common for them to return with nothing, or with only the lowest grades.
Thirty years ago Hong Kong played an important role in the 'ud trade, but today the international hub is Singapore. There, the wholesale business is dominated by Chinese traders who receive 'ud from agents scattered across Vietnam, Cambodia, Laos, Burma, Thailand, Borneo, Hainan Island and, most recently, Irian Jaya, Indonesia. C. P. Ng, owner of Buan Mong Heng, a emporium on North Bridge Road, is Singapore's undisputed 'udking. He tells me that his best 'ud sells for $5000 to $10,000 per kilogram ($2275-$4545/lb). At present, the rarest and most expensive type, known as Keenam, comes from Vietnam; it must be stored in a cool place to keep its scent from deteriorating. In Irian Jaya alone, he says, more than 50,000 part-time collectors supply some 30 collection centers. Throughout the Chinese community in Singapore, he says, people use 'ud as incense in the home, for worship and during marriage ceremonies. He also explains that it can be taken with herbs to cure a stomach ache, and that the sweet smell is a cure for insomnia. "A tea made from 'udwill warm the body and restore youthful vigor to older men," he says.
In Singapore, 'ud is graded in descending quality from Super AA, which is weighed out on a jeweler's scale, to Super A, Super, and lesser grades numbered 1 through 8. The lowest quality, called kandulam in Malay, is used to make incense sticks; it sells for roughly three cents a gram ($1 per oz). The value of 'ud shipped out of Singapore each year has been estimated to exceed $1.2 billion.
In the Middle East and in Borneo I never saw more than small amounts of 'ud, amounting to a few pounds at most, but Singapore was different. There I visited the Nk Kittai warehouse, where cardboard boxes packed with 'ud reached tall ceilings and wheelbarrows and shovels were the tools of choice to move quantities that perfumed the entire surrounding neighborhood. The owner, C. F. Chong, waited on buyers from India, Saudi Arabia, the United Arab Emirates, Oman and even Japan. In Japan, 'ud is used in a complex fragrance guessing game called koh-do, part of the ceremonial appreciation of incense adopted from the Chinese, who still use the expression wenxiang, "listening to the incense."
The fragrance in the hot warehouse was overpowering, and as I wandered the narrow aisles surrounded by a fortune in scented wood, I saw 'ud logs as thick as my thigh and nearly three meters (10') long. Workers sat on the floor cleaning up pieces of 'ud with modified rubber-tapping knives. When I remarked that it must be a risk to store so much'ud in one place, Chong replied that he, like other dealers, kept his very best 'ud locked up in vaults.
Out on the warehouse floor, buyers specified the type of 'ud they wanted by region and quality, and then a worker would dump a pile at the buyer's feet so that he could hand-select the individual pieces. "This is an on-the-spot business," said Chong. "Each piece has to be evaluated."
Each buyer's selection was weighed, and as all of the buyers that morning were old customers, only a minimal amount of haggling led to an agreement on a price. Nobody, it seemed, bought more than he could easily carry by hand, and each parcel was tied up for stowage as in-flight baggage. The visits concluded with tea and soft drinks in Chong's air-conditioned office.
Before leaving Singapore, I went to visit Haji V. Syed Mohammed. His shop, V. S. S. Varusai Mohamed & Sons, is just across the street from the Sultan Mosque. The store sells'ud, perfume, money belts, cassette tapes, shawls, skull caps and highly decorative incense burners made in Bangladesh. While we were talking, he told me of one of the most renowned 'ud dealers in Dubai, in the United Arab Emirates: Ajmal's Perfume Manufacturing & Oudh Processing Industry. It was a fortuitous meeting, for Dubai was my next stop.
In Dubai, there are entire streets lined with shops selling 'ud. Among them, the family-run Ajmal company is one of the largest dealers in pure and blended 'ud perfumes in all of the Middle East. From their 22 shops throughout the Arabian Peninsula, they sell 'ud oils from Laos, Thailand, Cambodia, and Vietnam, and their most extravagant creation is a blend of aged 'ud oils called Dahnal Oudh al-Moattaq. The price: $850 for a 30-gram (1-oz) bottle. This is out of the reach of all but the most affluent, but nearly everyone can afford to buy modest amounts of 'ud chips for daily use, rituals and ceremonies—which might include driving, for Dubai automotive shops sell clip-on electric braziers that plug into a car's cigarette lighter.
Because of the popularity of 'ud, its high price and the difficulty of collecting it from the wild, several companies in peninsular Malaysia and India have begun to look into the possibility of artificially introducing the 'ud fungus into Aquilaria trees in hopes of creating commercial 'ud plantations. Thousands of trees have been inoculated with the fungus and people are waiting to see if the 'ud will start to grow, and if perhaps they can even harvest it without cutting down the tree.
Nearly a year after my visits to Singapore and Dubai, another trip took me back to Borneo. I ran into a group of Penan friends at the riverside shop of Towkay Yong Khi Liang, a Hakka Chinese trader on the upper Limbang River in Sarawak. The Penan had just traded a kilo of low-quality 'ud for a few sacks of sago flour, a replacement part for a chainsaw, some cartons of tinned food, some rolling tobacco, several pairs of cheap tennis shoes and soft drinks for everyone present.
As we stood on the dock, the Penan asked me if I had ever found out what the people in the Middle East did with the gaharu. I told them what I had discovered about the history of its trade, and then I explained the long and complicated journey it makes before arriving on the other side of the world. I described the networks of middlemen, the refined grading techniques and the marketing efforts that multiplied the price 25 times or more before it reached the final customer. They listened patiently to these facts, but what they really wanted to find out was what people did with the wood after spending so much money on it.
I suspected that they wouldn't believe me, but I had to reveal the astonishing truth: I told them people buy 'ud so that they can take it home and burn it.
Here at Silvinvest Ltd we can offer advice on how you can profit from the production of Agarwood (72% Guaranteed ROI). Feel free to book a telephone appointment using the appointment widget located top right of this Blog.
https://www.box.com/s/txb64aq3xz7mfahbwotv

Tuesday, 29 January 2013

Wood - Nature's Genius


Wood - nature's genius





Are you also fed up?

Fed up with being told that everything is going to hell?

What with CO2, the greenhouse effect, flooding, drought, hunger, exhaustion of natural resources, mountains of rubbish, and the pure hell of toxic pollution.

Well, don’t worry because there is a solution, wood.

Yes, trees and wood products are the way forward because wood is the world’s most environmentally friendly raw material.

Get this. Trees and forests are a source of raw material that grow every year, and forests are much prettier than coal mines and oil drilling platforms, but you may ask isn't it wrong to cut down trees? No, luckily cutting down trees is absolutely fine if forests are managed with the purpose of producing wood for manufacture and when we cut down trees, new ones are planted in their place. Furthermore, plantation forest areas are expanding; increasingly increasing by many 000's square kilometers each year.

Wood products are also healthier for the climate because trees take CO2 out of the atmosphere and store it in their trunks, then later in wood products. So, we are reducing the greenhouse effect every time we use wood in houses, bridges, furniture, and cars, and when you dispose of wood products the story still isn't quite over, burn them, for there’s energy stored in the wood, and by doing so you release only as much CO2 as the tree consumed when it grew thus replacing the use of coal, oil and gas, preventing CO2 emissions and resulting in no waste which is why wood is the world’s most environmentally friendly raw material; a resource that both grows and produces clean energy instead of waste which is more than you can say about metal or plastic, concrete, coal, oil and gas now isn't it.

So use wood for wood is good.


http://www.silvinvest.co.uk/investments

Friday, 23 November 2012

Tree Farms Are Becoming a Popular Investment.


Tree Farms Are Becoming a Popular Investment.



An area that is planted with trees for the purpose of producing timber is known as a tree farm. Tree farms are usually owned on a private basis and can refer not only to forests but to plantations and tree nurseries too. Both plantations and tree nurseries refer to places where trees are grown, for sale to commercial endeavours or retail markets.

Tree farms start with the planting of saplings, which are leaves that are either harvested or have been naturally dropped from trees. The investors then wait for these saplings to grow into trees. 

When the trees mature, they are harvested for wood and also for more saplings, which are then used to replace the trees that have been cut down, to grow a new generation of trees. This
process of regeneration can be repeated indefinitely so that a constant supply of trees is produced without the need for adding more land to the tree farm. This, in turn, serves to protect the environment as the area surrounding a tree farm can be conserved and maintained for its original purposes.

Those who invest in tree farms have the choice of the size and type of trees they plant. Some investors prefer to plant larger trees as these trees yield more timber per sapling while most investors in tree farms prefer planting smaller trees as the amount of wood or trunk as compared to the amount of leaves is less, and all the wood can more easily be harvested from the ground.

There are many different types of trees that can be planted in tree farms and the type of tree that an investor plants depends on the needs of the investor and the type of return that is desired.

One of the more popular trees used in tree farms is the Eucalyptus tree . Eucalyptus has a high density and is used extensively for paper pulp and increasingly Biomass. The wood has a quick growth cycle and is perfectly suited to most tropical environments.

Bamboo is the wood of choice for many forestry related investors. One of the main advantages of using Bamboo for a sustainable source of energy is the rate at which it can grow. As the fastest developing land plant in the world, a bamboo stump can renew itself in just 50 days after harvest making it a far quicker source of material than alternatives such as tree stumps and branches.

Furthermore, the water efficient method that Bamboo uses to grow and its ability to regenerate for an average of 25 years ensures that management costs are significantly lower creating a greater opportunity for return.

In addition, Bamboo Biomass requires a relatively lower temperature to process therefore further improving cost efficiency of producing new forms of energy. With consistent and rising demand, and with a ready-made market for this wood, it is easy to see why the Bamboo tree is a popular investment.
One of the more popular trees used in tree farms is the Teak tree Tectona Grandis. Teak is a tropical tree renowned for its grain quality that produces durable hardwood used extensively in furniture; house building, and yachts. Growing demand for teak wood, coupled with limited international supply, suggests that increases in teak prices should continue steadily. 

New Teak Forestry Plantations generally have a growing cycle between 20-25 years as the plantation is fully managed and use new practices to help with biological growth. However, many Teak investors buy in to a standing teak plantation where the trees are already established and the cycle from purchase to harvest is 10 years.

When investing in tree farms, an investor needs to carefully investigate and research the situation in order to determine which size and type of tree best suits their investing requirements. Here at Silvinvest, we have numerous options to prosper from tree production. Request a brochure: Teak, Agarwood, Eucalyptus, Bamboo and Paulownia products available.

Tuesday, 13 November 2012

Investing In Gold: 5 Clear Advantages


Treat yourself to Physical Gold


When income is not a requirement but long term stability and growth is the aim, Gold is an attractive and simple investment tool that has a strong reputation for building a consistent foundation on which to build a portfolio of investments.

Gold is the basis of our entire financial structure and provides a safe haven, whether Governments or retail investors. When the stock market is particularly turbulent and economies are faltering, Gold is the investment of choice.

As a limited commodity, Gold is continuously in high demand, creating a value to the commodity which is forecast for growth both in the short and long term.

Stability Of Investment

As the global reserve currency, Gold is always going to have an inherent value which means that any direct investment in the physical product will create a tangible commodity that maintains its structural worth and creates a viable safe-haven for those that continue to choose to invest in it.

As we move into times of economic uncertainty, investment in such a stable commodity acts as a buffer against the ravages of inflation and global market events to create a more certain opportunity for growth than a high proportion of other more liquid forms of venture.

Tax Relief

When investing in certain gold coins, there is no demand to pay either VAT on the purchase or Capital Gains Tax (CGT) on any growth within the portfolio.

This offers significant savings for tax payers, especially those that are liable for a higher rate in the UK, and makes the investment in Gold even more attractive.

Though coins are ineligible for pension investment which means pension holders cannot take advantage of VAT and CGT benefits, the up to 40% tax relief that is available within a pension acquisition does ensure a discounted rate for the gold purchased or enable a greater quantity of gold to be bought for the same price.

Direct Ownership

Whether coins or gold bars are chosen, when capital is placed into physical gold the investor himself becomes the legal owner of the asset.
The gold can then be stored on the owner's behalf or alternatively cash investors are able to take physical ownership of their asset whenever they so wish.

This creates a certainty of wealth in the investment that is simply not possible with so many other alternative ventures.

Infinite Term

The term of any investment in gold is also purely down to the financial decisions made by the investor himself.

The asset can be sold at any point in time either privately or back to the gold broker in question. This means that any cash investor can place their wealth into gold when interest rates are low and then liquidate their asset when they so wish or at a point in time when they feel their investment has reached an expected level of growth.

Flexible Investment

An investment of this type requires no minimum level of capital and can be extended to a substantial level. Furthermore, cash investments can be made directly into gold, or gold bars can be bought within both a SIPP and SASS pension to create wealth for retirement and stable growth for the future.


For further information on how to purchase gold, contact Silvinvest by booking a product enquiry appointment top right of page.

Monday, 12 November 2012

The Benefits of Choosing Argentina for Farmland Investment




Using farmland as a form of investment is becoming increasingly popular. Not only does such a step move away from the traditional investments that can be so severely impacted by changes in the stock market, but with the global population rising, the demand for food is only set to grow.

Why Argentina?

Though many areas of the world already enjoy significant investment in their farming industry, Argentina still has the capacity for further exploitation of the potential that this type of financial opportunity can provide. In fact, of the 60,000 hectares that are owned by the International Food and Water Energy Group in Argentina, only 28,000 are currently productive whilst further funds are raised. This provides an outstanding opportunity for individuals who wish to place their funds in such an investment to participate in a financial prospect that is set to soar over coming years.

The Potential for Growth

As the climate in Argentina is so suitable for effective farming, the country actually enjoys two harvests per year, making the investment opportunity here far greater in a shorter space of time that in some other less ideal countries. In addition, the rising demand for the products that are gown means that a high proportion of the crops are actually pre-sold before they are even planted, offering an underlying confidence in return that other sectors simply cannot provide. And though the international farm development plan has yet to achieve its full potential within Argentina, the agricultural sector in this South American country is well established with areas of expertise that will ensure future investment in the land is maximised.

Return on Investment

Since such a vehicle was introduced in 2007 over $10m has been paid to investors. For a five year investment plan, this equates to yearly payments between 9% and 12% with a final payment of 15% on the return of the initial sum, creating an ROI in just 5 years of 66%. Furthermore, longer 10 year investors have enjoyed ROI of up to 160% on their capital from annual returns of up to 15% and a final 40% payment when the FWE buy the land back. As all investment is carried out in tangible assets, each investor also holds the title of the land into which they have placed their funds for the duration of the opportunity. This provides a more solid, physical assets and further confidence in the security of the investment as a whole.

Flexible Investment Opportunities

With a minimum investment threshold of just £12,000 farmland in Argentina is the ideal opportunity for both medium and long term investment portfolios. It can be used as part of a much wider balance sheet of investments to spread overall risk or could be the ideal single opportunity for someone wishing to grow their nest egg for their own or their family's future. Farmland Investment opportunities can also be included in both SIPP and SASS pension funds creating an effective and environmentally friendly way of maximising a pension portfolio in anticipation of retirement.

Wednesday, 19 September 2012

A Simple Guide to UK SIPP's





A Simple Guide to UK SIPP's

This is a brief summary of the main rules of Self Invested Personal Pension and therefore will not cover every nuance or seek to apply to each individual. The information contained does not constitute advice and any questions arising should be discussed with a suitably qualified Financial Adviser. The thresholds and allowances are based on information and rules presently in force (Sept 2012).

Self Invested Personal Pensions (SIPP's) are, as stated, a form of Personal Pension available to UK residents. Generally, a SIPP is used by people who are comfortable making their own investment decisions. Unlike a conventional Personal Pension it allows you to invest in a wide range of different investments, including funds, shares, cash, alternatives and certain types of property.

Benefits can be accessed from age 55 and a tax free lump sum of 25% of the pensions value is available with the rest providing a taxable income. Benefits from a pension must be taken at age 75.

In most cases, annual contributions can match annual earned income. A £50,000 annual limit (2012/13) and a £1.5 million lifetime allowance also apply. On occasion, these limits can be affected by other factors. Carry forward (unused annual allowance from previous years) can ibe used to contribute more than the £50,000 annual allowance. Each new contribution made will apply   to the annual allowance within the tax year it is made (6th Apr - 5th Apr).

Tax relief is available to every eligible person. 20% of contributions are paid by the Government as basic tax relief. Higher rate taxpayers can claim a further 20%back directly via their local tax office and additional rate taxpayers can claim up to 30% (based on 2012-13 guidelines).

Non-earners or those earning less than £3,600 a year can contribute up to £3,600 gross per year (£2,880 net) each tax year and receive tax relief at 20%.

The potential advantages to having a SIPP arrangement can be :

Control: The greater control and flexibility to change contributions and investment direction

Choice: Diversify into your choice of investment and at levels you require.

Admin: All of your pension funds and investments can be held within one place.

Transferring existing pension plans into a SIPP is available. Many people have preserved pensions that have value with numerous providers. This can be from previous Employer Schemes, Final Salary Schemes, Stakeholder Pensions and SERPS. Many people think that the transfer process from personal pensions into a SIPP can be a nightmare but in effect it can be easy. That is not to say it is the right thing to do but if it is then the process is efficient.

Should you decide to transfer pensions, ensure that you understand how the transfer will be made. The vast majority of cases will transfer into the SIPP as Cash. Whilst you are deciding where the cash should be invested you will be outside of an investment and therefore not receiving returns. If seeking investment, remember that you can choose to invest across different investments and not just a single fund. This allows for diversification.

www.silvinvest.co.uk

Monday, 23 July 2012

Dear Prospective Investor


Dear Prospective Investor
Similar to many, you know that you need to be investing for your future and the future of your loved ones. With so many different investment options available all over the world, it can be hard to choose an investment product that is right for you.
Also, with all of the current upheaval in the markets and economies in various countries globally, picking an investment or market where you can feel assured of a future return can be a scary and difficult prospect. To compound the problem further, rates offered on savings accounts is less than inflation.
With all of these obstacles to safe investment, personal ideals such as environmental responsibility may have taken a “back-seat” when choosing between investment options, as most of the “big names” in Fund Management normally overlook the “eco-friendliness” of a particular market when creating their investment products.
It can be difficult to know if your investment with some of these big name investment firms is helping or hurting your investment plans.
However there are options to picking a sound investment that you can rest assured is also beneficial to the environment;
It’s easy to learn.
An asset class that is the third largest traded commodity world-wide.
An asset class that has actually risen in 3 of the last 4 economic downturns.
Has grown over 25% in recent years.
Sustainable and fair to the environment for current and future generations.
So What Is It? – Timber!
When considering investment options, many do not realize that there are eco-friendly, sustainable options for investing in timber that can actually help to improve the environment!
Silvinvest highlights several investment opportunities that are not only “Green” but offer superb potential returns. We explain how to invest using Cash or an existing UK Personal Pension. We also offer ideas and ways to provide investment returns to support your heirs’ long term financial future.
All of the marketed Forestry Plantations covered by Silvinvest are sustainable; this means that a method of plantation management is used that ensures profitability for investors, while preserving the environment. The importance of investing in sustainable timber cannot be underestimated. Legislation is being enacted by various governing bodies to stop the illegal harvest and logging that are devastating so many of the world’s old growth forests.
By investing in Timber, you are doing your little bit to help preserve the one resource that is responsible for the following;
1.6 billion people worldwide who depend directly on forests.
The majority of the world’s oxygen.
70% of the world’s cancer fighting drugs.
Up to 30% of land surface.
Ecosystems that are totally dependent on the world’s forests for survival.
The forests that you the investor help to create and the forests you help protect will take in vast quantities of carbon dioxide through the process of sequestration. This in turn will be converted into clean, breathable air, helping to reduce the CO2 within our atmosphere.
At Silvinvest, we are marketing certain investment plantations that can provide:
Transparency
Sustainability
Legitimacy
Potential
Rewards
Silvinvest also provides a helpful service where you can view brochures from responsible timber plantations. Access to the potential returns calculator so that any investor can quickly “crunch the numbers” associated with this investment class and easily see the potential value of investing in timber.
For example, estimates indicate that an investment of £18,000 in Costa Rican Melina Trees can be worth £104,189 at the end of a 12 year investment cycle.
Timber is a renewable resource that has been successfully traded for hundreds of years by many wise investors who have discovered the little-known fact that timber investments have generally outperformed stocks, bonds, and commodities over the long term.
This investment has remained remarkable immune to disruptions in the markets, or even political turmoil or terrorist attacks. The phenomenal growth of this industry when combined with various tax advantages, if held within a pension, that come from investing in commercial timber make this investment one that you cannot afford to at least educate yourself about before you make any decisions.
Since it is free to sign up for the newsletter and register to view brochures, downloads, investment calculators and more. Doesn’t it make sense to take a few moments of your time and learn more about the product?
Make a Change and Take Action Today.www.silvinvest.co.uk/articles



Pay As You Grow


Pay As You Grow is a saving fund for toddlers and children. It is directed at parents or grandparent’s who want to invest money for their children or grandchildren (legal guardians can also contribute). Since most saving accounts’ interest pays a pittance, finding a growth investment makes perfect sense.
Why Invest For Your Child’s Future Benefit?
Well, think of rising university tuition fees. According to BBC, at 2010 tuition levels, a student may well end up with a staggering £25,000 debt. Now, imagine the amount of debt going forward as new university tuition fees massively increase from 2012 onwards. Should you have more than one child, the potential financial burden is huge for any normal professional working family.
Another reason to save and invest an amount of money every year is many parents would like their children to be able to get on the property ladder. Currently, the average first time buyer age is 37 and this could possibly increase in future years. Until, as adults, they are able to pay off their mortgage, most of today’s young people will face retirement without any significant savings. Couple this with the fact that most of us live longer lives which will need to be funded from an ever stretching retirement pot, and you get a very clear picture of your offspring’s future.
What is Pay As You Grow?
Pay As You Grow is an investment in teak wood forestry plantations. What the investment basically does is fund the planting and growing of teak tress. In other words, it is a commodity investment. Investment in teak wood and forestry plantations has been, until more recently, the preserve of big investment funds.
Teak wood is the wood of choice for many Asians as it symbolizes quality and durability. Actually, teak is one of the most valuable of hardwoods because it can be used in construction, furniture, and marine applications. This makes it a price full commodity which has been producing fantastic returns every year for the last thirty years.
The way Pay As You Grow works is to plant teak wood trees and let them grow for 25 years and then harvest them and reap the financial benefit Also, a massive plus is the investment has come from a sustainable source and relieves the pressure somewhat on the long-standing and protected natural teak forests from illegal logging. Timber is a massive industry which ranks below only oil and gas in its size. Timber has uses in so many ways, just look around and see. Annually we use 50% more timber based products than what nature can provide.
All you need to do to take advantage of this opportunity is to invest a minimum sum of £3,600 in your child’s name. Your child in return gets allocated 50 teak trees and sublease agreement for the land on which they stand. You can include the investment into a Self Invested Personal Pension (SIPP) in your child’s name and receive 20 percent tax relief. Though, bear in mind that this option has some small annual administration costs. If investing via a SIPP, under current rules your child would not have access to returns until age 55 but can obviously reinvest returns from Pay As You Grow after year 25. This really does go a long way to providing considerable funds for when your child enters retirement.
If investing cash, the returns will go a long way towards paying university debt or used as a deposit on a house, for example.
Here at www.silvinvest.co.uk we host a Sales Brochure in our registered members area. The brochure also outlines various important and fun benefits to an investment. Just pop in your name and email address and you will have full access to the relevant documents. If you feel you would like to discuss the investment further, we have consultants available to deal with your queries and help with applications. Call on 0151 420 1765 for further informationwww.silvinvest.co.uk/articles