Food - Still The Best Investment
811 ViewsJust spotted this:
“Gold is up 27 percent this year as the Federal Reserve cut interest rates to ease strains in financial markets, sending the dollar to a record low against the euro.”
As exciting as this sounds, it’s not that much.
Silver futures for December delivery rose 27.4 cents, or 1.9 percent, to $14.599 an ounce, the highest closing price since Feb. 27. The metal has climbed 13 percent this year. Gold Tops $800
Ho hum. Whoopdeedoo. I’m not excited.
Now pay attention:
Which brings me to today’s subject: delayed consumer goods inflation. First some data; price increases from last year, spot month futures.
Soybeans: +76%
Corn: +66%
Wheat: +60%
Oats: +57%
Milk: +50%
Barley (i.e. beer): +50%
Rice: +33%
Coffee:+20%
Crude oil: +53%
DAP (di-ammonium phosphate fertilizer): +69%
Dry bulk cargo shipping rates: +350% (it’s not a typo) Sudden Debt
Someday, I’m going to slap the gold bugs upside the head with a sausage or a bucket of wheat. Giving out bad advice is going to cost a lot of lives.
November 4th, 2007 at 5:49 am
[…] My last blog entry shows that food is still the best investment. Price increases on food just this year alone were staggering. I’ve been warned by the cannery that if there is no rain by January for the wheat farmers, wheat could double over its current (high) price. I believe it, the possibility is certainly there. […]
November 6th, 2007 at 11:09 am
“Collectively, Americans eat almost as much in fossil fuels as we burn in automobiles.
American agriculture directly accounts for 17 percent of our energy use, or the equivalent of 400 gallons of oil consumed by every man, woman and child per year, according to 1994 statistics.”
http://www.recordonline.com/apps/pbcs.dll/article?AID=/20071104/NEWS/711040325