Archives

investment diversity into food

empty store shelvesAround the world, be it financial collapse, earthquake, tsunami, hurricane, civil unrest, blizzard, or a myriad other abnormalities people have found themselves facing empty store shelves.

Talk to them about investment diversity when they cannot buy groceries at any price. You are likely to hear them lamenting their poor pantry planning at the top of the list. Emergency planners list shelter, water, food at the top of anyone’s list. However, few of us can handle several days, let alone a week without resupply. Many cannot handle one day without stocked shelves nearby.

Suffice it to say, prudent people of significant maturity to recognize their world has numerous potentials for disaster will have a minimum of several weeks worth of food on hand at all times.

But we actually have a major food disaster unfolding

in slow motion right before our sleepy little eyes.

While far from sudden, the California drought is a disaster whose unremitting effects few seem to recognize yet. Most likely their fruit and nut trees will produce nearly nothing this year and farmers may require over 10 years of normal rainfall to come remotely close to past production levels. Visualize the market prices and availability that is roaring down the tracks at us RIGHT NOW.

“California used to produce 82% of the world’s almonds.
California accounted for 45% of the nations’ citrus crop value.
California grape crop accounted for over 90% grape production.
California was #1 exporter of agricultural commodities in USofA.
California accounts for over half of the harvested fruit acreage.
In 2010, 92% of the U.S. tree nut production was harvested from Golden State.

California produces a sizable majority of many American fruits, vegetables, and nuts: 99 percent of artichokes, 99 percent of walnuts, 97 percent of kiwis, 97 percent of plums, 95 percent of celery, 95 percent of garlic, 89 percent of cauliflower, 71 percent of spinach, and 69 percent of carrots (and the list goes on and on).”

What amazes me in a supply and demand economy is that I can still easily afford nuts fruit, celery and garlic. In fact, the pending plummet in California produce has created little price rise despite the shortage that can easily be seen just around the corner.

And we are not talking a short-term scarcity here. Few of us will see affordable nuts for nearly a decade. Do you have a ten year supply of any you wish to eat or cook with? Five year? One year?

If not, at least prepare you head for doing without, because that is the only other choice.

Our nation’s produce supply will take a major hit as well. Surprisingly, you can still buy canned vegetables at pre-shortage prices. Smart money invests heavily in them. Price increases over the next year will be 50%, 100%, 500%, and more, depending on the commodity… And that assumes other economic factors remain relatively constant.

Compare that to your 401K and stock portfolio performances. Nothing will come close to a strong investment in food today.

Diversify your investments. Leave some in the fiat paper and derivatives markets for 3% or so gains with upward potential of maybe even a thrilling 5% … and downward potential up to 100%.

But if you want performance you can see, feel, taste and be dazzled with, buy food.

Even the most pessimistic downside gains beat any stocks, bonds or mutual funds you will find.

——————

This isn’t the first time I have written on economics and the near future thereof.

ECONOMICS at Bitterroot Bugle .com (80 essays)
ECONOMICS at Idaholiberty .com (190 essays)
The Great Fall at Bitterroot Bugle .com (29 essays)
The Great Fall at Idaho Liberty .com (184 essays)