While sandalwood is not a necessity like oil, it's demand will...

While sandalwood is not a necessity like oil, it's demand will always remain strong, I believe. It's not something a lot of societies are willing to do without even in hard times. It's major detraction wouldn't be a fundamental issue but a market psyche one. Growing stuff isn't sexy for "sophisticated" investors. There's not much potential for a dramatic upside. Crop growth is a quantifiable outcome and can only reduce in size, rather than expand beyond projections. A lot of purchasing sentiment isn't just based on a calculated return over x years but also on the casino factor. For example, the chance that a sudden spike in gold prices boosts your gold stock or a publicly listed law firm has a big win that suddenly boosts revenues (Shine). TFC will be a steady grower (pun!). It should be favoured by pension funds and the like but it's not really big enough to attract those capital inflows. But hell, beats sticking the money in the bank.