Hiam, there are issues with the assets you mention:
1. Ag land:
a. Taxable, annually.
b. Not portable.
c. Not liquid
d. Has already been bid up quite a bit.
e. Requires leasing to someone who knows what they are doing, and will not mess it up.
2. Orchard or vineyard:
a. Requires ongoing maintenance.
in addition to a - e above.
3. Forrest: Yup good, except for the risks of:
a. Fire (which is a frequent occurrence around here).
b. Pine bark beetles (same)...
c. If you get through all that, maybe you can harvest in 30 years, depending on location, moisture, climate.
4. As for "not more mundane and much more expensive metals":
a. Platinum and palladium, I agree, especially with the producer situation in South Africa lately, and the rarity as compared to Au... but dependent for 50% of demand on auto production... so you would have to expect an improving economy... (which, who knows, we may have with all this qe).
b. Would like to know your other choices here... other choices in a Bernanke world would would be handy to evaluate... For example, Cu has done well lately, but starting to look a bit toppy perhaps. |
