Gold News

Steak & Wine Speculation

Dollar down? Not only gold, but fine wines and steak up as well...


DEEP DOWN
we knew it all along of course, writes Addison Wiggin, publisher at Agora Financial in Baltimore.

Over countless lunches at Mick O'Shea's, we knew we were on the right track...but we just couldn't put our finger on it.

Finally, a study released today confirms our suspicion. The ultimate investment class of the last generation...and perhaps the next...is...

Wine!

That's even better than gold. Of course, we'd be remiss not to add – you can't drink a Krugerrand Gold Coin when the going gets tough.

Check the study out: Raise Your Glass: Wine Investment and The Financial Crisis. Seems we may have missed our calling. And while you're out stockpiling wine today, pick up some steaks, too...because beef prices are soaring.

just as we, with the help of our buddy Doug Casey, have forecast in these pages.

The credit crisis put a stranglehold on the already wheezing cattle industry. The USDA claims worldwide beef production has declined three years in a row. The ethanol hoax and rising corn prices haven't helped matters much.

Add in the abnormally cold winter we just lingered through, and cattle are starting to seem scarce. Cattle futures are up 20% already this year, says the Financial Times. Traders are now flirting with the $1 a pound mark, a pre-credit crunch high.

Indeed, if the falling Dollar doesn't find some support soon, all commodities will rise, says our resource trader Alan Knuckman here at Agora Financial. "The Dollar may be marking a reversal from the uptrend to recent 10-month highs. This break is what we have been looking for to accelerate the commodities rally.

"As you can see from the chart above, the Dollar has broken well below its 50-day moving average – marking a bullish turn for commodities. Assuredly, I'll be keeping a close eye on this potential Dollar reversal in the next week."

Want to Buy Gold or Silver today, slashing your costs on the very safest metal? Go to BullionVault now...

Publisher of Agora Financial, Addison Wiggin is also editorial director of The Daily Reckoning. He is the author, with Bill Bonner, of the international bestsellers Financial Reckoning Day and Empire of Debt, and best-selling author of The Demise of the Dollar.

Addison Wiggin articles

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

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