Investing In Something "Stable"

CBS Evening News: In Days Of Sinking 401ks, People Turn To Gold, Stamps ... And Alpacas

(CBS)  A dog may be man's best friend, but Peggy Parks would rather have an alpaca.

The 49-year-old's future is riding on the llama look-alikes, CBS News correspondent Kelly Wallace reports. Do her friends think she's crazy?

"My friends do think I'm crazy," she said.

She was sick of watching her retirement savings move in the wrong direction, so a year ago, Parks, a building-code inspector, decided to start breeding the furry and low-maintenance creatures from South America.

"With alpacas, it's something tangible that you have in your hand, it's always going to be there," she said.

She made the unconventional investment after learning how robust the alpaca business can be. Alpacas are in high-demand, because their fleece is used in high-end clothing, and a breeding female alpaca can fetch upwards of $15,000. Her initial $56,000 investment for seven animals has already paid off with two new baby alpacas.

"As you can see with a male and female, I've already made at least $15,000 in the first year," she said. "That's a nice return."

Turning to tangible assets - like alpacas - is nothing new. Investors did the same thing during previous market downturns, and didn't always come out ahead.

Travel to parts of Texas and there's a good chance you'll run into an emu. Breeding them for their lean meat was all the rage in the '90s, but when the investors lost their shirts, the birds were set free.

"Research, everybody should do their research," Parks said.

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Couric & Co.: Read more about Parks and how she's herding her savings.

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Three years ago, Parks didn't even know what an alpaca was.

But after doing her homework, she's betting her retirement on them.

[incog-nito]

How about tulips? I hear they''re a great investment!

[bmwr1150rt]

The difference between emus and alpaca is that alpaca have been a proven business in the USA since 1984. Alpaca are registered, DNA cross-typed, and microchipped for identification. There already is a world wide market for alpaca products made from their fleece. The $15,000 Ms. Parks paid for her female is an average price for a female. High end females will sell for $35,000 to $80,000. High quality stud males sell for well into six figures. The Alpaca Registry and the Alpaca Owners and Breeders Association, along with State Chapters have created an model livestock industry where the by-products of the livestock, alpaca fleece, is a very desirable raw material.

[incog-nito]

"Three years ago, Parks didn''t even know what an alpaca was.

"But after doing her homework, she''s betting her retirement on them."

Great idea. If it doesn''t pan out you can always fall back on alpaca meat for subsistence.

[bmwr1150rt]

For incog-nito, if you search tulips as an investment on the web, you will find one article at http://investment.suite101.com/article.cfm/tulip_mania. It does go on to tell about how tulips did many investors in and ruined many dreams - in Holland in the 17th Century. The same website Suite101 if you search alpacas as an investment you will find a very favorable article, quote: "Between their cartoon faces, fluffy bodies and gentle disposition, what%u2019s not to love about alpacas? Alpaca farming in the United States is still in its infancy having only been introduced into the US in 1984, but the industry is catching on like crazy. While alpaca farming isn%u2019t a get-rich-quick business, the industry''s future is stable, and the demand for alpacas is strong.

The profits from alpaca farming are two-fold. The biggest are secured through the alpaca%u2019s offspring (cria) to other farmers. The second is the alpaca%u2019s lush coat that has wool spinners paying handsomely for the finely-textured fiber. end quote http://breedinglivestock.suite101.com/article.cfm/alpaca_farming. People investing in alpaca have done their research. As the Suite 101 article states, it is not a get rich quick business.

[bmwr1150rt]

Fabulous Fiber
Alpaca wool is a luxurious product that is high in demand by wool spinners.

Alpaca wool as soft as cashmere only lighter.
An advantage that alpaca has over sheep%u2019s wool is that it is finely textured, so it doesn''t itch.
It%u2019s also three times warmer than sheep%u2019s wool.
Spinners enjoy the fact that alpaca fiber doesn%u2019t contain lanolin (a natural grease). So unlike sheep''s wool that spinners normally work with, alpaca doesn%u2019t have to be washed up to twenty times before being spun.
Alpacas are Easy Livestock
Alpacas are naturally curious and gentle animals, making them enjoyable for children to be around and easy to handle, especially while shearing. They are easily trainable and don%u2019t spit all that much. Honest. Spitting is rarely aimed at humans. Usually spitting occurs between alpaca arguing over food or establishing herd order among themselves. Instead of hooves, alpacas have two padded toes, which makes them environmentally-friendly on pastures.

Do your homework. This not a Republican/Democrat issue. There are very knowledgeable and successful alpaca farmers that are republicans, democrats, and independents.
You''ll never get into alpaca farming buy cashing in your deposit cans. You guys are really making yourself look silly...

[blackyowe]

This is a pyramid scam. You can still buy raw alpaca wool from Peru so cheap in bulk no way in a life time will you get your money back on one female alpaca. Then there is a problem of who is going to buy your wool. The mill industry is dead in this country for the most part. Only a few hand spinners will be interested. I know, I do sheep and wool festivals for a living. It''s a snob game and the last one to get an alpaca looses! Besides there is no market for all the redundant males and they are already showing up at exotic auctions and selling for about 150.00 in the Midwest

[FHMullane]

Incredible. Just like the Emu and Ostrich business the Alpacas will go the same way. You make money in the beginning and just about the time you have a large herd the bottom falls out and you can''t pay the feed and vet bills! Such a shame.

[bzwha]

Alpacas are a good way to supplement a retirement financially. A good retirement consists of more than money: good physical and mental health are important, too. What''s this got to do with alpacas? Taking care of them keeps you outdoors and in shape. Learning keeps your mind growing, not shrinking. You learn basic veterinary care of your animals, how to shear, what excellent fiber is, how to skirt, spin, knit, felt or crochet - ie the fiber arts. You learn about pasture management and poisonous plants.
Inevitably, you make new friends.
You feel a sense of calm when you are around these animals. When you are with them, there is no way you can be sarcastic, cynical or meanspirited.

[blackyowe]

They are nice pets like donkeys and dogs. There is nothing that special about them. I have a flock of sheep and they make me feel calm and peaceful too. Alpaca''s are just a snob thing and most of the world knows it. I have found that few alpaca breeders even bother to shear their animals at the right time. I have been watching this for a long time and the Alpaca growers do not even have a big following of hand spinners. Few of the Alpaca breeders have learned to spin either. There are allot of bloodlines where the wool is not even very good quality and the older the animal the harsher the coat.

[odeliafarms]

The alpaca industry is small and growing. To date, there are barely 150,000 alpacas in the US. There are two kinds of alpacas, suri and huacaya, each with their own unique fleece characteristics. Suris tend to be very rare and highly sought after for their silky, lustrous fleece. Huacayas are known for their wool-like, crimpy fleece that is soft and fine to the touch. There are many different aspects to the alpaca industry, so people are attracted to alpacas first because of the animal and then because of the skills that a new and developing industry needs. People can invest in alpacas with whatever amount of disposable income they may have. There are many different ways in which to become involved whether you own land or not. One dividend alpacas offer that other investments do not, is wonderful community of people you meet, all sharing a common interest. Although prices have varied depending on the economy, the industry has stayed relatively stable over its 20+ year life span. And of course alpaca ranchers all know the secret of alpaca farming - the peace you feel inside just watching them in the field after a hard day at the office. Priceless! n

[jeanwithaj]

Please check your facts. Alpacas have sustained a fiber industry for thousands of years in South America. The market for the fiber already exists, unlike the emu/ostrich fads of the past where no market existed. Alpaca breeding is a scaleable business model with a regulated industry, and the end product is useful from cottage-biz crafting to commercial applications. It''''s non-cruel, eco-friendly, and grassroots, not a lawn ornament hobby/get-rick-quick/pyramid scheme. Like any other investment, it takes care, research, time and diversification for best ROI. Read the WSJ article that ran October 3rd for more.

[bobgee_1999]

What kind of idiot buys gold at 778, particularly when it is dropping? Stamps are worthless, except to collectors. When the bottom finally drops the rest of the way, you''ll be better off with a can of beans.

[jrlordjr]

What kind of idiot buys gold at 778, particularly when it is dropping? Stamps are worthless, except to collectors. When the bottom finally drops the rest of the way, you''''ll be better off with a can of beans.

Posted by bobgee_1999

With a can of beans, it will at least pay off with gas.

[tallyman2008]

Naw - only 3 things have stood the test of time

Hookers, Drugs, and Booze

[alpacalady1]

I appreciated seeing alpacas on this news segment and felt CBS did a good job presenting the alpaca lifestyle. However, in comparing it to the emu/ostrich fade pertinent facts were omitted. These two birds were raised largely for their meat and breeders were banking on the finicky taste buds of Americans to consume something unusual. Alpacas are raised strickly for their luxurious fleece that produces a durable, quality end-product. They are sensitive, intelligent, personable creatures that win the hearts of all who come in contact with them clearly demonstrated by the attendance at my Open Ranch Days this Thanksgiving weekend which approached 300 visitors. Visit an alpaca ranch in your area and see what I am talking about.

[william_lerd]

I have invested some of my money in 40 year old hotwheel cars in mint condition.

[wl7bzh]

I''m spending my on an edumacation...edukashun..edu..School

[stupidrules3]

I find it hard to invest in something that eats. How much does an alpaca eat anyway? Groceries are way up you know.