I can 'hear' MC Hammer singing "you can't eat this..." right now.
GOLD.
Since the start of the economic-financial crisis five years ago in 2007, gold has protected people from depreciating financial assets (equities, bonds) and depreciating fiat currencies (Dollar, Euro).
- Today's largest buyers of gold are central banks. Maybe they see also gold as a store of value, and not just another asset you cannot eat?
CORN.
The USDA just cut the US corn crop estimate by 17%, with yield projected at a 17-year low.
- So, while you can't eat gold, neither can you eat corn if you don't have the gold to pay for it first (if you can find corn to eat after the insane US ethanol fuel policy has turned a lot of corn from food stuffs into inefficient and expensive/heavily-subsidized fuel).
In case the enviro-weenies in policyville 'missed' it...you can EAT corn; if you need fuel, that pretty fiat paper isn't at all tasty, but it burns rather well.
GOT...?
Presented are two views of the best-performing assets over the past five years.
- In tandem with the rhetorical "got gold?" we should maybe seriously consider "got corn?"............
Saturday, 11 August 2012
You can't eat this...................from Rico
From Theo Spark at 15:02
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