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Invest in Food
sprottmoney.com ^ | 3/20/15

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 ...


TOPICS: Agriculture; Business/Economy; Food
KEYWORDS:
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1 posted on 03/27/2015 8:14:00 AM PDT by Kartographer
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To: appalachian_dweller; OldPossum; DuncanWaring; VirginiaMom; CodeToad; goosie; kalee; ...

Preppers’ PING!!


2 posted on 03/27/2015 8:15:05 AM PDT by Kartographer ("We mutually pledge to each other our lives, our fortunes and our sacred honor.")
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To: Kartographer

Kart,

Another good post - Thanks.


3 posted on 03/27/2015 8:18:40 AM PDT by Iron Munro
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To: Kartographer

But... but... but... gold does a body good!


4 posted on 03/27/2015 8:19:49 AM PDT by Old Sarge (Its the Sixties all over again, but with crappy music...)
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To: Kartographer
Bttt.

5.56mm

5 posted on 03/27/2015 8:21:52 AM PDT by M Kehoe
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To: Kartographer

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.


6 posted on 03/27/2015 8:26:38 AM PDT by CodeToad (Islam should be outlawed and treated as a criminal enterprise!)
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To: Kartographer

The ability to grow or hunt food is even more valuable.


7 posted on 03/27/2015 8:30:22 AM PDT by SamAdams76
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To: Kartographer

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.


8 posted on 03/27/2015 8:30:56 AM PDT by LadyBuck (If your name isn't on a list already, you should be ashamed.)
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To: Kartographer

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.


9 posted on 03/27/2015 8:35:48 AM PDT by Pollster1 ("Shall not be infringed" is unambiguous.)
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To: LadyBuck

“... 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.


10 posted on 03/27/2015 8:35:50 AM PDT by momtothree
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To: Kartographer
Corn at $389.50, 1139 hrs, 3/27/15. Watch for a bushel at $400.

Just saying...

5.56mm

11 posted on 03/27/2015 8:37:27 AM PDT by M Kehoe
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To: Kartographer
Conagra $35.81 +1.09 trending up.

5.56mm

12 posted on 03/27/2015 8:39:46 AM PDT by M Kehoe
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To: Old Sarge
But... but... but... gold does a body good!

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.

13 posted on 03/27/2015 8:52:25 AM PDT by Bloody Sam Roberts (I've been to the 15th broken moon of the Medusa Cascade & the diamond coral reefs of Kataa Flo Ko.)
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Water , Food, firearms, hygiene, fiscal resources / barter items for post event recovery, shelter, fuel , cordwood, medical, clothing...... all cash in the cache........ my opinion.


14 posted on 03/27/2015 9:03:08 AM PDT by Squantos ( Be polite, be professional, but have a plan to kill everyone you meet ...)
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To: Kartographer

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?


15 posted on 03/27/2015 9:04:25 AM PDT by Sherman Logan
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To: Sherman Logan

Yes. what figure did you use for gasoline, it’s been all over the place here.


16 posted on 03/27/2015 9:06:28 AM PDT by nascarnation (Impeach, convict, deport)
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To: nascarnation

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!


17 posted on 03/27/2015 9:13:23 AM PDT by Sherman Logan
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To: nascarnation

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.


18 posted on 03/27/2015 9:16:41 AM PDT by Sherman Logan
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To: Sherman Logan

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.


19 posted on 03/27/2015 9:27:39 AM PDT by nascarnation (Impeach, convict, deport)
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To: Sherman Logan

Good stuff,thanks.


20 posted on 03/27/2015 9:37:58 AM PDT by Big Red Badger (UNSCANABLE in an IDIOCRACY!)
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