What’s so Important About Rice?
Apr 9th, 2008 | By Charles Delvalle | Category: Gold MarketWhen I was growing up, it never mattered how bad my day went or which concert I might have missed, because there would always be rice, beans, and meat on the table every night.
As a member of a Puerto Rican household, rice was a staple food (as were beans and meat). And according to Bloomberg, rice is a staple for 50% of the world. But the world’s love for rice is introducing yet another bullish scenario for the agriculture bull-run.
Thanks to soaring demand from Asia, the price of rice has rocketed five times higher over the past five years. And things are now set to get worse.
You see, nations are starting to cease exporting rice as stock piles shrink. And to them, they have to do this to try and stop prices from going any higher and causing domestic upheaval. The thing is, it hasn’t been working.
In just the past year, the price of rice has doubled. And as nations continue to hold back exports, other nations will continue to flood the markets with buy orders in an attempt to secure rice at any price.
You can expect to see this for the next few years. And it definitely helps the case for a bull run in agriculture. The perfect way to play such a run would be to buy the DBA Proshares Agriculture ETF (DBA), which lets you make money as the agriculture bull-run charges ahead.
Advertisement
They've led you to believe that investors who want outsized gains must take on ridiculous risks.
Click here to learn how a Small One-Time Investment Could Grow Until It's Larger Than All of Your Other Investments Combined.
Charles Delvalle is a self-taught market-timing professional and value analyst who's followed and invested in the market for the past ten years. He uses a unique combination of technical and fundamental research to pinpoint rapid profit opportunities with stocks and options.
Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering undervalued, cash-rich companies. He frequently mocks government stupidities and points out the "inaccuracies (or lies, take your pick) that government reporting frequently dispels as "truth".
