Saturday, March 27, 2010

Garlic Bubble in China?

Just what we need - another financial bubble forming!  Speculation in China has driven the wholesale price of garlic up 605% to US $1200 per metric tonne in one year.  GARLIC WAS THE BEST PERFORMING COMMODITY IN CHINA IN 2009 - AND IS SET FOR A REPEAT PERFORMANCE IN 2010.    China is the world's #1 supplier of garlic, and U.S.-grown garlic has appreciated 70% in the last 12 months due to the pricing pressure (upward!) from China.  Who knew?  (Apparently Confucius originally extolled the virtues of garlic in Shih Ching, the oldest anthology of Chinese poetry.)  There is no futures market in garlic however,so we're hooped as investors.  Watch for the Chinese government to clamp down hard on the garlic speculators.  (Fortune/CNN)  What next, a tulip bulb bubble?