Rice Investment: Its Time to Rebalance Your Portfolio

Most investors over the last 5 years will have been frustrated by the poor level of returns that have been delivered from traditional asset classes. For those still invested in Equities and Bonds, they have seen their returns disappear and be replaced by higher levels of volatility. Now the main focus for the average investor is capital preservation.

Whilst the equity and bond markets have suffered through the current economic crisis, the commodity markets have been quietly continuing in a bull market. Most investors if they look at the commodity market, probably don’t look much further than Gold or Silver, but there are many other markets to consider.

One of the categories often overlooked is the softs commodity classification. Within this category is Sugar, Cotton, Coffee, Coca, Orange Juice, Lumber and my favourite Rough Rice.

The price of Rough Rice has seen the rise of a bushel rise from $10 in 2007 to over $25 in only 5 months. It has now dropped back to $15 per bushel, but investors would have done well over the period.

For investors, volatility means risk and so some will see that this market is too risky to invest in. a rice investment though does not have to be risky and can be safe and predictable without the increasing price swings seen in the commodity markets.

One Rice Investment will help you the investor achieve double digit returns whilst helping to feed the worlds growing population. This investment is truly a win win and socially responsible.

You may ask, how can this be achieved? The answer is to directly invest in arable rice land in Africa. With this investment, you get a 49 year lease on the land and a share in the returns made from the land. For many this investment could be considered risky, but many African Governments have tightened up their property law to make this investment attractive to overseas investors.

This investment helps the government in many ways, as it secures land for agriculture and prevents it being used for development. The money that is raised is then use to improve the infrastructure around the agricultural land which tends to lead to higher yields being produced from this land.

Project annual returns from the crop yields are between 15% and 18% and the land can support more than just rice production. Nuts have also been introduced which helps maintain the nutrients in the soil that would be lost through monoculture.

The rice investment also delivers a yield to the investor through an increased value in the arable land. As the land increases the level of crop that is produced the economic value of the land rises. After about 5 years there is a plan to sell all the leases to a large financial institution. The sale of this land should deliver for the investor a 100% capital appreciation in the value of the land.

The investment period for this investment is considered to be about 5 years and requires a minimum investment of 5,850. The projection over 5 years shows that the return to the investor could be around 16,801. This calculates to be a profit of over 2,000 a year for every year invested.

This rice investment opportunity delivers secure returns at a time when most traditional asset classes are showing poor or negative returns to the investor. This investment not only boosts your portfolio it helps protect the poorest people in the World.

Interested in Rice Investment make sure you check Mark Skeels’ excellent free report on Rice Investment. Sign Up now for your free Alternative Investments Report.