Posted on 03/27/2015 8:14:00 AM PDT by Kartographer
It is in this environment of extreme financial risk and perpetually spiraling food prices where we consider the proposition of food as an investment asset class. We begin by looking at the “fundamentals” of this market/investment class. And what we see (from this perspective) is extremely encouraging: food prices consistently soaring by roughly 20% per year, and significantly more for some categories of food (notably meat products).
With soaring food costs being a serious drain on the budgets of most families, our challenge is to find some way of turning this financial drain into a means of preserving/protecting our wealth: by investing in food. Regardless of one’s economic bracket; this is an investment opportunity which can be pursued by all of us.
(Excerpt) Read more at sprottmoney.com ...
Preppers’ PING!!
Kart,
Another good post - Thanks.
But... but... but... gold does a body good!
5.56mm
I think it is smart to invest in food before gold if possible. Gold and silver should be invested in just in case you have to leave the food behind, but food first.
The ability to grow or hunt food is even more valuable.
Curious to know how much everyone has cut back on beef consumption here.
I’m buying under 10 lbs a month.
The rest is on-sale chicken and bulk pork tenderloin at Sam’s.
We have been making a serious dent in our food preps, too.
Has the SHTF already and no one told us?
When one trip to the grocery for a few days worth of produce & milk is over $60, something is definitely OFF.
Gold is not at the top of my prep list. Food, lead, sanitation, and medicine are much higher priorities. I think lead will be worth as much as gold if Obama succeeds in fundamentally transforming our country as he dreams of doing.
“... has cut back on beef consumption..”
We have. I serve/cook more chicken now and stock up when I can afford it. For example, our local store has Purdue Oven Roasters for .99 cents a pound and I bought four. I serve beef maybe once a week and only if it is on sale.
Just saying...
5.56mm
5.56mm
It's not supposed to. Food won't protect your liquid assets when a new economy rises from the ashes of what we have now. Ya gotta be able to buy back in somehow.
Water , Food, firearms, hygiene, fiscal resources / barter items for post event recovery, shelter, fuel , cordwood, medical, clothing...... all cash in the cache........ my opinion.
Amazing how little effort the author put into proving the basis for his article, that food prices have consistently gone up. And therefore should be expected to do so in the future.
There are really, really good reasons for having a supply of food on hand. But saving money because food prices inevitably go up isn’t one of them.
Here’s how many minutes an employee of median income had to work to purchase a gallon of milk and a loaf of white bread in various past years.
1955 Milk 23 minutes Bread 4.5 minutes
1975 Milk 16 minutes Bread 3.1 minutes
1995 Milk 10 minutes Bread 3.1 minutes
2015 Milk 9 minutes Bread 3.4 minutes
BTW, I picked two random food items to come up with this info.
A VERY large chunk of what people view as increasing food prices is their purchase of prepared rather than staple products. That is a lifestyle choice, not an increase in the price of food. Recently saw frozen PB&Js at Publix, and they weren’t cheap.
Stats aren’t purely comparable because they’re based on median family income, drastically influenced by average family size.
Went back and ran same number for gasoline prices.
1955 6 minutes at median income
1975 7 minutes
1995 4 minutes
2015 8 minutes
Interesting, what?
Yes. what figure did you use for gasoline, it’s been all over the place here.
I used 3.35, which is what I was thinking it’s been around here. Sadly, I typoed it, with the real number being 2.35.
That makes the correct number of minutes needed to buy a gallon of gas here 5.5, which is less than it was in 55 and 75, and not that much higher than in 95.
Thanks for prompting me to check my math!
BTW, the income/minute I came up with is:
1955 .04
1975 .09
1996 .27
2015 .43
This is the most accurate way I can think of to compare prices from one period to another. Inflation calculators always vastly overstate how much prices have increased, if any, because they don’t factor in the increased median income.
Taxes and a host of other issues play into this, of course. For instance, you could figure disposable median income rather than total. It’s actually remarkably difficult to compare prices over time, apples to apples.
It’s all good. Like your methodology.
Since I’m retired and don’t drive too many miles these days, the gas component of our budget is not too big.
But I’m sure for those who drive a lot the recent decline is very welcome.
Good stuff,thanks.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.