One highly invested commodity is Wool. Its uses are vast and can prove to be an extremely solid investment to add into your portfolio.
But ultimately the question remains… “Is Wool A Good Investment?”.
If we can first define what a good investment is then we can best answer the question.
And honestly that depends on the investor. If to you a good investment is something that will generate a high return then Wool is likely not the best investment for you, but if you define a good investment as something that fills out your portfolio to balance and hedge your other investments then wool is likely a good investment for you.
Let’s dig deeper.
Investing in wool is a great bet when higher inflation is looming or present. Currently in the United States we are experiencing a period of a free flow of free money that is massively affecting inflation. These easy money policies have the potential to significantly increase inflation. These conditions are likely to be highly beneficial for wool prices. Since there is limited supply of sheep, the price of wool would likely benefit even from the fear of inflation. By investing in wool you are intelligently diversifying and reducing the overall risk in your portfolio.