Gold and silver experienced another strong year and with today’s release of the Fed minutes saying that the printing press might not extend past 2013, it might lead to some interesting reactions in precious metals. In 2012 the most interesting commodity was coffee.
You might wonder why your cup of coffee has not decreased in price. In fact, your Starbuck’s blend has increased by 1% if you are in New York or Atlanta. Folger’s (J.M Smucker) might have decreased prices 6% in 2012, but only after they increased prices 23% in 2011. In reality, coffee prices are just back to where they were in 2010:
You can thank the rest of the rise in the end product’s cost to the cost of transportation and the way addiction plays into the supply/demand equation.
