Grains
 | Beans | Oils | Misc Food Items

Purchasing precious metals for a hedge against inflation is nothing new. Many investors have been flocking to precious metals for some time now. The fundamentals of aquiring  tangible assets are similar in many ways no matter the type of commodity. The adage “if you can’t hold it, you don’t own it” has never been truer. The paper markets will come crashing down; it is only a matter of time. As people continue to look for safe places to put their money, there are less and less options available.


Along with precious metal ETF’s and mining company stocks, many advisors have been shouting about the importance of acquiring agriculture related assets. For the average person, purchasing in agriculture has been limited but that has changed as a new “vehicle” has come on the scene. Bulk Food International now offers the opportunity to purchase bulk foods as a tangible asset.

 

A few questions arise when thinking about purchasing bulk foods.

1. Why purchase bulk foods and why now?
2. How and where do you store bulk foods?
3. How do you get bulk foods back into the market when prices rise?

 

1. Why Purchase bulk foods and why now?

The same reasons exist for purchasing bulk foods as it does for buying  precious metals. The most common reason to purchase tangible assets is to provide protection against inflation. In the, April 2011 issue of Independent Living, Lee Bellinger writes, “In the 1970’s inflation led to wage-price spiral, which ultimately led to wage-price controls. This time around, however, global inflation is being led by energy and food prices. So it won’t be the 1970’s wage-price spiral that ravages Americans, but a food-price spiral which has already commenced globally with revolutionary consequences.” Liquidity is another commonly held concern when purchasing any commodity. Bulk foods, much like physical precious metals can be readily bought and sold through a global network. Unlike paper assets, physical bulk foods can be used for personal use or it can be sold back into the market. In a time of political and financial break down, tangible assets will be the only currency.

While most supply constraints have usually been temporary in nature, major disruptions are on the horizon. These unfortunate circumstances provide profitable opportunities. (Emergency plans, preparedness kits and home food storage are must have’s.)   Many of the uprisings across the globe in 2011 were in direct relation to food prices. Many governments are currently buying as much food as they can in order to avoid the higher food prices they are anticipating.

  • Egyptians spend 40% of their monthly income on food
  • Tunisians spend 36% of their monthly income on food
  • Americans spend 6.1% of their monthly income on food

As food supplies become increasingly strained and the dollar continues to decline, food costs in America will rise. Diversification is often spoken of in a way that many people never question. How diverse is my portfolio if I am in all paper assets? Even if you have some agriculture, gold / silver, energy and real-estate stocks, bonds or mutual funds, you are not diversified. True diversification is having allocations in different asset classes.

 

2. How and where do you store bulk foods?

Long-term food storage is nothing new.  Without refrigeration, humans stored food for millennia with similar techniques to those we use today.  Temperature, moisture/air and pest still remain the most common threats to long-term food storage.  Our underground warehouse is a very secure facility with an environment suited for long-term food storage.  It has a constant cool temperature and humidity levels are stable at sixty-two percent or below. We offer you access to your products and can arrange shipping to your chosen destination any time.

 

3. How do you get bulk foods back into the market when prices rise?

Bulk Food International will facilitate the sale of your product as a part of the value of your product purchase or you can choose to sell your bulk food yourself.  There is a fee if you decide to have us sell your products.  We make no guarantee as to how long it will take or the price it brings at the time.