Grain vs gold

[atreyu42]

Hi.

It seems most people here think it is better to put the money in gold than in rice, wheat, corn, etc.

Doesn't it look like grain will go up more than gold until the end of the year, at least?

http://online.wsj.com/article/SB120881517227532621.html

[jk]

Hi.

It seems most people here think it is better to put the money in gold than in rice, wheat, corn, etc.

Doesn't it look like grain will go up more than gold until the end of the year, at least?

http://online.wsj.com/article/SB120881517227532621.html
nice link- encapsulates the inflationary dynamic well. the risk to grains is the same as the risk to all commodities - if there is a global recession their prices will retreat as new meat eaters "deleverage" their diet by returning to a more carb based diet. for long term investors this means finding an allocation they can live with during the roller coaster ride ahead. in the meantime, [to quote a source i don't recall] the sack of flour in my pantry has outperformed my investment portfolio ytd.

[Finster]

Hi.

It seems most people here think it is better to put the money in gold than in rice, wheat, corn, etc.

Doesn't it look like grain will go up more than gold until the end of the year, at least?

http://online.wsj.com/article/SB120881517227532621.html

Why is it either-or? That's like asking a mother to choose which child she wants to give up!

Gold (and to a lesser extent, other monetary commodities like silver, platinum and copper) and commodities like rice, wheat, corn, etcteras (using futures) play different roles in a portfolio. The former are a good place for a part of a "cash" allocation to protect it from inflation, similarly to foreign currencies, except better. The latter are better thought of as investments that might be used in place of part of a stock allocation for diversification and inflation protection.

[phirang]

we;ve yet to see the full cost of high oil perculate into the food supply chain... when it does, watch out!