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What You Should Know About Investing in Natural Resources You may want to consider investing in natural resources for various reasons. One of the reasons is the decrease in the world’s natural resources. This has led to an increase in prices of various resources over the years. If you invest in a personal forest, you can end up reaping huge benefits in future through sale of lumber. There are different natural resources that you can invest in. Gold, coal and lumber make it on the list of the most profitable natural resources for investment. You should find out the benefits and downsides of investing in different resources before committing to buying them. Why Investing in Natural Resources is Lucrative Here are some reasons why you should consider investing in some natural resources:
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i) Increased spending by developing economies There has been an increase in come of developing countries over the last decade. As a result, the demand for building materials, precious metals and other natural resources has also been increasing. There is always the potential risk of supply shock when investing in natural resources like oil. However, in the long term, investors reap huge benefits since the prices of these resources usually rises.
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ii) Demand for more infrastructure As more infrastructure projects continue to be launched globally, the demand for natural resources continues to surge upwards. Developing economies are constructing roads and other public infrastructure and this means they have huge demand for lumber, steel and other natural resources. The increased construction in these economies is brought about by a booming population and increasing urbanization. Apart from this, the majority of infrastructure constructed will have to be updated regularly. Countries are likely to spend more on the natural resources need for construction of public works and infrastructure when they go for decades without upgrading them. iii) Political purchases Various countries usually purchase natural resources to ensure there is no shortage of raw materials for their industries. Sometimes, the buying can be done through political agreements or foreign acquisitions. Investing in natural resources is profitable partly due to the demand created by governments. iv) Store of wealth Various natural resources can be used as a store of wealth. The natural resources are excellent stores of wealth since they are usually not subjected to fluctuations in the market. Among the natural resources you can use to store wealth are precious metals. Unlike stocks that can be erratic depending on the happening in the country, precious metals maintain a fairly stable price. When it comes to storing wealth, precious metals are better investment options than stocks. You should educate yourself on the options available if you plan to invest in natural resources. Another option would be to hire an investment manager to help you navigate the natural resources investment options you have. An experienced manger can help you find out which investment options would be best for you based on your expectations.

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