Best of the Week
Most Popular
1.U.S. Inner City Turmoil and Other Crises: Ron Pauls Predictions for 2015 - Dr_Ron_Paul
2. What’s In Store For Gold Price in 2015? - Ben Kramer-Miller
3.Crude Oil Price Ten Year Forecast to 2025: Importers Set to Receive a $600 Billion Refund - Andrew_Butter
4.Je ne suis pas Charlie - I am not Charlie - Nadeem_Walayat
5.The New Normal for Oil? - Marin_Katusa
6.Will Collapse in Oil Price Cause a Stock Market Crash? - OilPrice.com
7.UK CPI Inflation Smoke and Mirrors Deflation Warning, Inflation Mega-trend is Exponential - Nadeem_Walayat
8.Winter Storms Snow and Wind Tree Damage Dangers, DIY Pruning - Nadeem_Walayat
9.Oil Price Crash and SNP Independent Scotland Economic Collapse Bankruptcy - Nadeem_Walayat
10.U.S. Housing Market Bubble 2.0 Meet the Pin - James_Quinn
Last 5 days
Stock Market Test of Strength - 26th Jan 15
Is the Gold Price Rally Over? - 26th Jan 15
ECB QE Action - Canary’s Alive & Well - 26th Jan 15
Possible Stock Market Pop-n-drop in Store For SPX - 26th Jan 15
Risk of New Debt Crisis After Syriza Victory In Greece - 26th Jan 15
How Eurozone QE Works: A Guide to Draghi's News - 26th Jan 15
Comprehensive Silver Price Chart Analysis - 26th Jan 15
Stock Market More Retracement Expected - 26th Jan 15
Decoding the Gold COTs: Myth vs Reality - 26th Jan 15
Greece Votes for Syriza Hyperinflation - Threatening Euro-zone Collapse or Perpetual Free Lunch - 26th Jan 15
Draghi's "No-growth" QE Money for Stocks, Zilch for the Economy - 25th Jan 15
Unjust and Undeclared Wars - 25th Jan 15
The European Central Bank Commits Monetary Suicide - 25th Jan 15
Stock Market ECB EQE week - 25th Jan 15
Gold And Silver Timing Is Most Important Element - 25th Jan 15
The Best Way to Invest in the Next Alibaba Internet Stock IPO - 25th Jan 15
The Outpatient Surgery Business Rains Cash into Healthcare Stocks - 25th Jan 15
Stock Traders Flock to Gold GLD ETF - 24th Jan 15
10 Reasons Why You Need an Offshore Bank Account - 24th Jan 15
Goldman Sachs Blankfein - Regulation is Like Background Noise - 24th Jan 15
Gold in Euros Surges As ECB To Print Trillion Euros and Greek Election This Sunday - 24th Jan 15
Gold Bear Market Rally or New Bull ? - 24th Jan 15
Euro-zone 'QE already Working' Says IMF Lagarde - 23rd Jan 15
ECB and EU LTRO and QE for Dummies: Or, Make These Trades - 23rd Jan 15
Debt and Deflation: Three Financial Forecasts - There's More Than Falling Prices - 23rd Jan 15
Market Should Not Doubt' Mario Draghi ECB QE - 23rd Jan 15
Francs, Bonds, Barrels, and Bail-Ins - 23rd Jan 15
Are Plunging Petrodollar Revenues Behind the Fed’s Projected Rate Hikes? - 22nd Jan 15
Stocks Bear Market Lessons from History - 22nd Jan 15
Russia's Plans for Arctic Supremacy - 22nd Jan 15
166 Trillion Reasons Why Bank Stocks Are So Cheap - 22nd Jan 15
Will Gold Price Break Out Once Again? - 22nd Jan 15
The Cult of Central Banking - 21st Jan 15
Five Stock Market Questions Wall Street Hopes You’ll Never Ask - 21st Jan 15
China's Yuan Enters the Currency "Big Leagues" to Take on the Dollar - 21st Jan 15
Investor implications of QE by the ECB - 21st Jan 15
Deflation Bonanza! And the Fool's Mission to Stop It - 21st Jan 15
Messin' With My Financial Brain - 21st Jan 15
Are Stock Market Buyouts Checking Out? - 20th Jan 15
Legal “Steroids” Are Making This Tech Stock a “Buy” - 20th Jan 15
Are Stock Market Storm Clouds Massing? - 20th Jan 15
The Swiss Release the Kraken! - 20th Jan 15
The European Union, Nationalism and the Crisis of Europe - 20th Jan 15
Swiss Say No to QE - 20th Jan 15
Gold Demand Explodes as Volatility and Fear Stalk Market - 20th Jan 15
The Truth About This Stock Market "Meltdown" Indicator - 20th Jan 15
Markets 2015 More Of The Same? - 20th Jan 15
Is Market Sentiment Shifting to Gold? - 20th Jan 15
U.S. Dollar’s Major Breakout and Gold’s Simultaneous Rally - 19th Jan 15
Silver Price Breaks Out on Swiss France Euro Decoupling - 19th Jan 15
Gold Bullish Inverse Head and Shoulders Pattern - 19th Jan 15
Bundesbank Announces Repatriation of 120 Tonnes of Gold from Paris and New York Federal Reserve - 19th Jan 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

State of US Markets 2015 Report

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

© 2005-2014 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

Free Report - Financial Markets 2014