Best of the Week
Most Popular
1.UK General Election Exit Polls Forecast Accuracy - Nadeem_Walayat
2.What's Next for the Gold Price? - Axel_Merk
3.UK House Prices Correctly Forecast / Predicted Conservative Election Win 2015 - Nadeem_Walayat
4.15 Hours to Save England from SNP Scottish Nationalist Dictatorship - Election 2015 - Nadeem_Walayat
5.Exit Poll Forecasts Conservative UK Election 2015 Win - Nadeem_Walayat
6.Gold And Silver China’s Pivotal Role: More Questions Than Answers. Not So For Charts - Michael_Noonan
7.Conservative Win 2015 UK General Election, BBC Forecast of 329 Seats - Nadeem_Walayat
8.Investing and the Lollapalooza Effect - Niels C. Jensen
9.Gold Price Target - Rambus_Chartology
10.Gold Price Nearing An Important Pivot Point - GoldSilverWorlds
Last 5 days
Money Murder Mystery: Who Killed the Stock Market? - 25th May 15
Why Do We Celebrate Rising U.S. House Prices? - 24th May 15
Mario Draghi’s Slippery Downward Slope - 24th May 15
Gold : Truth is Stranger than Fiction - 24th May 15
Facebook Stock Price Forecast - 24th May 15
Make a Killing on the Coming Energy "Debt Bubble" - 24th May 15
Stock Market SPX Uptrend Inflection Point - 23rd May 15
What You Know for Certain - Huge Demand for Gold And Silver - 23rd May 15
Are We in Another Credit Bubble? And Is It Different than Before? - 23rd May 15
The “Real Flash Crash” Will Scare You to Death - 23rd May 15
Venezuela: No Rule of Law, Bad Money - 23rd May 15
Robots That Can Beat the Market by 100% - 23rd May 15
Why Shake Shack Stock Is a Bad Investment - 23rd May 15
Gold Price Primary Driver Bullish - 23rd May 15
Time To Get Real About China - 22nd May 15
Gold Lifeboat to Global Economies “Titanic Problem” Warn HSBC - 22nd May 15
One Investment Could Save Two Generations' Retirements - 22nd May 15
Investing is About Identifying Gifted and Talented Camps - 22nd May 15
One of Europe's Latest Debt Nightmares - 22nd May 15
UK Immigration Crisis Could Prompt BREXIT, Propelling Britain Out of EU Despite German Factor - 22nd May 15
America Superpower 2016 - 21st May 15
Stock Market Secular Versus Cyclical Investing - 21st May 15
Banking Stocks Break Out with Higher Bond Yields - 21st May 15
The Tech Portfolio Built to Beat the Market - 21st May 15
Gold “Less Sexy” Than Bitcoin … For Now - GoldCore on CNBC - 21st May 15
The Russia-West Rivalry in the Balkans - 21st May 15
The US Dollar and the Precious Metals Complex - 21st May 15
Gold GLD ETF Drawdown Continues Unabated - 21st May 15
Who’s Killing the Stock Market? - 21st May 15
Your Best Way to Profit from the Narrowest Market in 20 Years - 21st May 15
Government Regulation and Economic Stagnation - 20th May 15
It’s Time to Hold More Cash and Buy Gold - 20th May 15
Choppy Asian Stock Markets - 20th May 15
Countdown to Global Financial Collapse - 20th May 15
Will Interest Rates Ever Rise? - 20th May 15
How to Cash in on Amazon Stock’s Amazing Cloud Success - 20th May 15
Three Hidden Forces Pushing Crude Oil Price Back Up - 20th May 15
U.S. Housing Market Strong Numbers in Perspective - 20th May 15
Greece Debt Crisis - Obama Has A Big Fat Greek Finger - 20th May 15
Now Is the Time to Own the Oil & Gas Leaders - 20th May 15
UK Deflation Warning - Bank of England Economic Propaganda to Print and Inflate Debt - 20th May 15
Trading Gold and Silver along with the Pros - 19th May 15
Gold Ticks Higher as London Housing Market Crash Looms? - 19th May 15
Global Stock Market, Commodities Group Analysis - 19th May 15
How Stock Investors Could Profit from the Dark Net Pattern That Few Others See - 19th May 15
The Patriot Act is now USA Freedom Act - 19th May 15
Investing in Europe? 5 Critical Insights to Boost Your Portfolio Now - 19th May 15
Gold Price Trend Forecast - 19th May 15
Stock Market Continues Defying Gravity, Dow New All Time High - 19th May 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Biggest Debt Bomb in History

Gold Bullion Christmas Dinner

Commodities / Gold and Silver 2012 Dec 13, 2012 - 10:10 AM GMT

By: Jan_Skoyles

Commodities

Aside from the presents, getting the biggest Turkey in the shop, making sure the house is warm and festive and the compulsory family argument the other tradition at Christmas is the vast expense it costs us all.

Christmas has always been expensive but over the past few years it seems to have really crept up. Whilst factors such as weather conditions are frequently blamed on meat and vegetable price hikes our research shows that when the Christmas dinner is priced in gold oz or gold grams, rather than British pounds or dollars, prices haven’t crept up anywhere near as much, and in some cases are going down in price.


So whilst governments can argue that price increases seen in food overall remain below the inflation measurement basket, it suggests that the real rate of inflation is significantly higher.

Christmas is celebrated by over 160 countries, each with their own traditions. And within them each family has their own ways of doing things. Here in the UK, and in the US, we have the traditional Christmas meal which usually comes with Turkey and all the trimmings.

According to the grocer.co.uk the price of the UK traditional dinner has increased by 14.3% in the last four years. However when we put it convert the cost into gold ounces the price has in fact decreased by 35%.

Turkey ‘aint so bad
The cost of meat is one of the biggest gripes today, but is the price going up or is the value of cash going down?

In the UK we have seen a 14% increase in the cost of frozen turkeys since 2008 when priced in British pounds. However, when priced in gold oz we see a decrease in the average price of a turkey by over 34%.

Around Thanksgiving the US media pounced on the increase in the cost of turkeys. Something which they were unable to explain given the increasing number of turkeys farmed every year. Yet the price keeps rising. In the US, the situation is even more dramatic when looked at since 2000. The price of frozen turkeys when priced in dollars per lb has shot up by over 60% since 2000. However, when priced in gold ounces per lb it has fallen by over 60%.

Eat your greens…if you can afford it!
And what about the vegetables? Well, looking at the price increases here we can see why it is so expensive to maintain a healthy diet these days.

Brussels sprouts, or as I like to call them ‘the parent’s revenge’ have gone up an extortionate amount, nearly 70% when priced in British pounds. But when priced in gold ounces the price change in percentage terms is just over 2%, and it’s a decrease.

It’s the same situation for carrots. When you look at it on a month by month basis you see the price can be quite volatile, but it has clearly been decreasing when priced in gold oz.

We find a similar case for the other vegetables which dress our Christmas plates, including potatoes.

And what about that time old classic – mince pies? We don’t just eat these on Christmas Day in the UK, they’re a general December fixture and their popularity doesn’t seem to be waning. Yet despite the same demand, why has the price increased by 5.7% in the last 4 years? It hasn’t, not when priced in the faceless currency that is gold ounces – instead it has decreased by 39%.

“Do you take gold ounces?”
Of course you can’t go and pay for your Christmas food in the shop with your gold ounces.

However, it might be worth thinking about putting your Christmas budget into gold at the beginning of the year, then your Turkey might not turn out to be so expensive after all.

Want protection from debt and defaults? Buy gold online in minutes…

Jan Skoyles contributes to the The Real Asset Co research desk. Jan has recently graduated with a First in International Business and Economics. In her final year she developed a keen interest in Austrian economics, Libertarianism and particularly precious metals.  

The Real Asset Co. is a secure and efficient way to invest precious metals. Clients typically use our platform to build a long position and are using gold and silver bullion as a savings mechanism in the face on currency debasement and devaluations. The Real Asset Co. holds a distinctly Austrian world view and was launched to help savers and investors secure and protect their wealth and purchasing power.

© 2012 Copyright Jan Skoyles - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jan Skoyles Archive

© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Biggest Debt Bomb in History