It would seem the world does not have enough salt speculators.
The following chart shows the price of gold compared to the price of salt from 1913 to 2008.
I should also point out that the chart ends in 2008. The price of gold was $871 then. It is now over $1200. Gold is far into bubble territory compared to salt, just as it was compared to cattle, aluminum, and the precious metals found in the platinum group (see links below).
Which is really the safer store of value? I would claim that salt wins by a HUGE margin. It has tracked the CPI much better than gold over the last 100 years. Gold is all over the place. Fortunes were made and lost as speculators rushed in and rushed out. That's not my idea of safe. Further, gold was extremely expensive compared to salt in 2008. It's only gotten worse.
I know what you might be thinking. Yeah, but what if salt explodes higher in price due to all of this monetary printing press activity? Wouldn't the ratio look much better then?
1. Then buy salt! It is currently very cheap relative to gold.
2. Don't hold your breath.
May 25, 2010
Ministry plans massive salt purchase to prop up prices
VietNamNet Bridge – The Government has been asked to buy 200,000 tonnes of salt to help salt producers cope with the falling price.
May 17, 2010
Price, surplus hits salt firms
In the first four months of this year, the country produced 350,000 tonnes of salt, twice that during the same period last year, according to the Ministry of Agriculture and Rural Development.
Meanwhile, the salt import volume increased due to falling global prices. As a result, farmers sold salt at record lows of between VND200,000-VND500,000 (US$10.5-$26.3) per tonne in mid-March.
I have no interest in owning gold at these prices. I remain deflationary. There's no telling how much higher gold might go relative to the things I actually need though. More power to it. Just don't count on me supporting its price. I sold in 2006. I'm done.
Gold breaks $1,250
Gold prices hit a new record high of $1,254 an ounce as nervous investors piled into the precious metal.
If there is one thing the markets love to do, it is to eventually ruin the hopes and dreams of nervous investors.
A Century of Gold Bubbles
Gold vs. The World's Oldest Money
Gold to Aluminum Price Ratio
USGS: Historical Mineral Prices
The Market Ticker - The Bill To Fix Health Care - Permanently - Let's lay out the parameters for a bill, a fairly-modest update to my two previous missives on this point here and here (note the dates) and which can be...
10 minutes ago