Commodity - Tea

Question: If commodity prices for items such as tea, pork, wheat, sugar, coffee beans and rice are going up; why is gold and silver going down? Premium tea has doubled in price from one year ago. Sugar has almost trippled in price over the past 18 months. So why not precious metals? Sure, many may think precious metals prices are high but in comparison to all other real things it actually is not. Has gold and silver doubled from one year ago? No. Gold & Silver are severely undervalued my friends. Buy buy buy....

Tea Commodity Chart-
http://www.indexmundi.com/commodities/?commodity=tea

Premium Longjing Green Tea & Premium Puh'er tea - Price: 180RMB

Government Issued Inflation Rate in China over Summer 2011 - 6.2% - 6.5%

Real inflation rate is perhaps double that just over this past Summer. Of course some goods and services vary.

NOTE: THIS EXAMPLE IS FOR PREMIUM TEA FROM A PREMIUM TEA SHOP. NOT ALL TEA WILL REFLECT PRICE INCREASES AS MY EXAMPLE. THERE ARE SEVERAL OTHER FACTORS THAT MAY MAKE ONE VARIETY INCREASE IN PRICE VS. ANOTHER.

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[DavidJH007x]

I have a 17 and 18 year old Puher teas but we will probably drink them. Its got great medicinal values you can boil it for around 7 minutes with Ginger to make a heal all tonic.

[clearasvodka]

@DavidJH007x Best not to drink it. Although they say 20 year old is ripe - perfect age for many Puh'er teas. Why not drink the mid-grade stuff and keep your good Puh'er?

[wepollock]

perhaps the yuan is undervalued to purchasing power.. in other words it needs to be stronger. i am long hkd

[clearasvodka]

@wepollock Agreed. If we look at the money supply of the yuan/rmb the Chinese haven't done the general public any favors via the printing press. There is a lot of hot money here and I think that is partly why the Chinese government is very cautious in allowing their currency to be fully exchangable world wide. Protectionism runs very deep in Asia. In Korea I noticed how difficult it was to open a business or transfer funds from bank-to-bank for foriegners.

[stuttgurth]

Housing prices should have doubled too.

[patrikkorda]

great idea, i have been doing this with red wine for a while now. although, i think we will have price-deflation across the board for the the next month or so.