Super Rich from Winning a Lottery-Chapter 350 - 245: 8 Years, 400-Fold Increase (Part 2)

"New huanghuali furniture is generally made from Vietnamese huanghuali. Now, due to the scarcity of raw materials, and to protect the ecological environment, the Vietnamese government has begun to restrict the severe logging of raw materials, enacting corresponding measures and raising the export tariffs on Vietnamese huanghuali, with tariffs exceeding 100 yuan per kilogram.

The rise in raw material prices and labor costs has naturally led to finished product prices skyrocketing as well."

Market data from the end of 2010 shows that each ton of selected Vietnamese huanghuali material had reached nearly one million yuan, while board materials ranged from 2 to 3 million yuan per ton, a four to five hundred-fold increase in eight years.

In fact, the price of Hainan huanghuali increased by 400 times from 2002 to 2010, also over eight years.

In 2002, the price of Hainan huanghuali was only 20,000 yuan per ton, and now, by 2010, it has soared to 8 million yuan per ton, not to mention the large material boards.

Due to the relatively fast market transmission of new huanghuali market prices, a situation has arisen where some ordinary products of "old" huanghuali are even less expensive than "new" huanghuali. However, once the cultural and historical value of old huanghuali is excavated, its potential for collection and appreciation cannot be underestimated."

"2011 to 2012 may be the years where the trend for Ming and Qing classic furniture, especially huanghuali furniture, ascends the most vigorously. Ming and Qing huanghuali are likely to become the next collection craze after calligraphy and porcelain."

The driving factors are mainly threefold: firstly, previous prices were perpetually underestimated; secondly, as antiques become increasingly popular, more collectors are beginning to favor the culture of classical furniture; thirdly, if collectors have acquired exquisite calligraphy and porcelain, they also need matching Ming and Qing classical furniture for display and decoration.

This will gradually form a large-scale collection, with prices continually climbing.

Although astronomical prices can be expected, it has become very difficult to collect Ming Dynasty huanghuali furniture. "Collectors are unwilling to sell easily, so they have to go overseas to collect and bring them back to the country."

For investors, in the long run, items with resource scarcity are always worth investing in, but they must meet three standards: first, the material; second, the style; and third, the craftsmanship. Only collections that perfectly combine these three elements offer the highest return rate.

However, the current price of huanghuali is far beyond the reach of ordinary investors and the general public, so it is recommended for ordinary buyers to choose the collection of red sandalwood classical furniture from the Republic of China period.

The annual yield rate for red sandalwood generally increases at a rate of 20% to 30% per year. Because classical furniture has both collection and usage value, it has gradually entered the homes of ordinary people.

Experts generally predict that in another five years, huanghuali may become completely extinct. Although titles such as "20 billion idle fund rushes south to sweep huanghuali" frequently appear in the headlines, when it comes to huanghuali, the notion of "no speculation left" is almost foreseeable, so where will the next "huanghuali" be?

Many industry insiders of classical furniture believe that red sandalwood is likely to become the second huanghuali. The current price of red sandalwood is only a fifth to a quarter of that of Vietnamese huanghuali, meaning room for further increase is larger. 𝗳𝐫𝚎𝗲𝚠𝚎𝗯𝕟𝐨𝘃𝚎𝗹.𝗰𝗼𝗺

Even so, red sandalwood is already a "rising" variety.

Now, huanghuali, rosewood, and sandalwood furniture are widely recognized for collection, and their prices will remain high.

In the coming years, beechwood and golden phoebe furniture with Ming and Qing classical furniture cultural characteristics will also be favored by collectors, and are still worth the attention of collectors and investors.

Their prices are relatively low at present, but in the future, they may be accepted by many who love traditional culture.

Upon learning the future price trends of Hainan huanghuali, Yi Anguo certainly would not worry that these large pieces of Hainan huanghuali furniture would end up being unsellable and stuck in his hands. The current prices are high, and the future prices will only grow higher.

Unlike Laos red sandalwood and Indian small leaf red sandalwood, although these two types of wood will be expensive in the future, their scarcity is far less than that of Hainan huanghuali. As long as there's money, there's no concern about not being able to buy raw materials.

But Hainan huanghuali and Vietnamese huanghuali will be difficult to purchase even with money in the future.

Some Vietnamese huanghuali can still be purchased now, so Yi Anguo continues to have Yi Xiaolin buy more Vietnamese huanghuali. After all, compared to future prices, current Vietnamese huanghuali is relatively cheaper.

"The current Vietnamese huanghuali is increasingly scarce, and prices have multiplied many times. Better materials are priced at over a million yuan per ton, while some large materials and boards are priced at 2 million yuan per ton," Yi Xiaolin added.

"Domestic Hainan huanghuali wood is already hard to come by, and as the only material close to Hainan huanghuali, it's normal for Vietnamese huanghuali prices to rise as well," Yi Anguo said.

"In the future, Vietnamese huanghuali will also become increasingly scarce, and prices will rise higher, possibly even reaching over ten million yuan per ton."

"Therefore, we certainly cannot give up now. We will continue to purchase Vietnamese huanghuali, and as long as the price is suitable, we'll buy as much as we can."

"Buying now is already a profit, and it will be even harder to buy in the future."

"Aren't we cooperating with the Guo brothers? What's the situation now? Are we still cooperating?"

Yi Xiaolin quickly replied, "Our cooperation with the Guo brothers has been ongoing. The Guo brothers are responsible for purchasing in Vietnam, while we receive the Vietnamese huanghuali they purchase from Vietnam at market price."