Is Oud more expensive than gold? – Explained

What is Agarwood?

Oud or Agarwood is the most expensive wood in the world and can be obtained from the Aquilaria tree’s resins. In eastern cultures, it is also known as the Wood of God. The Aquilaria tree can be found in Asia’s countries, and the best quality of Agarwood can be obtained from India, Indonesia, Cambodia, and Vietnam.

Agarwood can be produced from the infected part of the Aquilaria tree; infection of fungus becomes the cause of producing the Agarwood. Without infection of fungus, the Aquilaria tree cannot be able to produce the Agarwood. This infection usually takes several years to produce the Agarwood from the Aquilaria tree.

Why is Agarwood very expensive?

The main reason for the higher prices of Agarwood ($4700 per 500g ), Click Here to See Price Update, is its rarity and some considerable benefits. There is a rare natural production of Aquilaria trees, and from those trees, less than 2% of trees can produce Agarwood.

Some Agarwood experts claimed that the best quality of Agarwood could be obtained from the elder Aquilaria trees that are also even scarcer.

Agarwood is used for health purposes like abdominal pain, fevers, respiratory and digestive systems.  It is also used for invoking a deep sense of relaxation. Other than medicines, it is also used in some other household items such as soap, body washes, perfumes, and creams.

The reason for the rarity of Agarwood is the deforesting and depletion of Aquilaria trees throughout the world. In today’s environment, the defrosting trend is increasing, and natural resources becoming unique and rare.

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Is Oud more expensive than gold?

As discussed, Agarwood is the most expensive wood globally, and sometimes a Kilogram of Agarwood is expensive than gold, depending on the rarity of the tree. In the Indian Oud market, a kilogram of Oud can be a sale at the price of $129,316. 

 As discussed, the Aquilaria tree is only valuable if it is infected by fungus and usually takes approximately 40 years to produce high-quality Agarwood.

Once you have obtained the higher quality of Agarwood hen, there is also a challenge to extract the oil from Agarwood because the extraction process is also costly and takes a considerable time to complete the processes.

If you want to extract Oud oil through the water distillation process, it will take 1-3 months to complete it.

  Oud oil is also known as the water of gold due to Oud oil’s higher prices.

Behind the rising prices of Oud:

Naturally grown Aquilaria tree is scarce globally. These trees have higher demand because naturally grown trees can produce a higher quality of Agarwood than cultivated and planted Agarwood.

In cultivated Agarwood, the traders use some chemicals, medicines, and injections for earlier growth of the Aquilaria tree, and Agarwood is unique due to its organic growth.

The price of an item can be obtained from its demand and supply. The demand for Agarwood is continuously increasing, and supply is limited due to the rarity of the Aquilaria tree.

According to an Agarwood’s market expert, a Kilogram of Agarwood can be sold at the price of $30,000 per kilogram. The price of Agarwood and Oud oil depends on the quality of the wood.

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Over time Agarwood is becoming a rare product throughout the world, and it isn’t easy to search for higher quality Agarwood from the market. If you are in the search of  Agarwood, then you have to be familiar with the quality of Agarwood.

The price of Agarwood depends on the quality of Agarwood; if the quality of Agarwood is lower, then it can be available in the market at lower prices.

If you want to export the Oud, then Vietnam is the best option to export the best quality Agarwood, and it is also the main exporter of Agarwood in the Asian Market.