Investing in walnuts - The Walnut Fund
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Mar

Investing in walnuts

For centuries walnut investing and walnut farming was reserved for the rich and prosperous. The wait for walnut trees to give first yield was a luxury not many farmers were able to afford. Nevertheless, those that could bear the first few years without income, were rewarded extensively. The article below provides a detailed overview into the world of walnut investing. We will take a look at historical trends in walnut prices, what is causing the rise in demand of walnuts, the advantages and disadvantages of investing in walnuts and much more.

Historical in-shell walnut prices

The below chart portrays the FOB (freight on board) price variation for wholesale walnut prices from the 1990’s to 2020. Freight on board (FOB) prices are the most accurate estimate of what a large scale walnut producer is paid for their annual harvest. Although yearly prices are dependent on a multitude of factors long term trends show a yearly increase of 3.45% in walnut wholesale prices. With limited supply and rapidly increasing demand for walnut products, walnut investing proves as a safe haven for investors worldwide. As price volatility is minimum and future price projections are positive, investing in walnuts has become a popular alternative investment option.

Demand and production

With the rise of health conciensousness and healthy dieting walnuts have become a much sought after necessity. The versatility of this healthy nut as an ingredient has been enhanced over the past few years and can now be found in ready-to-eat meals, cereals, chocolates, bars, ice-creams, cooking oils and many other products. Due to increasing demand, worldwide walnut production has been on a steady rise for the past several years. With supply unable to cope with the rate of increasing demand, forecasts for walnut prices are very optimistic and it has never been a better time to invest in walnuts!

The good and the deficits of investing in walnuts

As is with all investments, walnut farming has it’s advantages and disadvantages. Let us compare what the conveniences and downfalls of investing in walnut trees are.

Advantages

  • Walnut trees provide years of passive income
  • Walnuts are very valuable and prove to be a very profitable investment
  • Walnut trees are much more resistant to pests and harsh climate than other agricultural products are
  • Market prices are less effected by turbulent economic cycles then other investment options
  • An amazing way to diversify your asset class
  • By investing in walnut trees you help out the environment and help keep the planet healthy
  • Constant increase in demand
  • Rise of popularity in the everyday household

Disadvantages

  • Long initial wait for tree maturity and cash flow to begin.
  • As with all agricultural goods yield is climate dependent and may vary from year to year.
  • Overall climate change may impact productivity

With investors leaning continuously more towards nontraditional investment options, walnut investing has become increasingly popular. Providing a secure and long term passive income stream investing in this commodity is an option that should seriously be considered. The walnut fund is proud to be the first online investment platform to provide investors the option to invest in walnut trees online.

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