I was struck by an Bloomberg article declaring “World Food Prices Surge to Record, Passing Levels That Sparked 2008 Riots” because in all my research I had not analyzed this dataset from the Food and Agriculture Organization of the United Nations. As I usually do when I run across a broad dataset from a respectable organization, I started playing with the numbers. I found more confirmation that gold is expensive against inflation previously discussed in “Gold is Mighty Expensive Inflation Insurance.” Here are the charts
source: Food and Agriculture Organization of the United Nations and Bloomberg
I think a lot of investors/speculators will be mighty surprised when we get inflation and significant commodity price movements while gold does nothing or even worse moves down.