July 1, 2011

Since the year 2000, commodities have been in a steady bull market, but it has been difficult for small investors to cash in on this raging bull market due to the minimal requirements of futures contracts and the inefficiencies of agricultural exchange traded funds (ETFs). However, a new method is emerging with much more promising returns: buying large quantities of regularly used dry and canned goods.

News reports come out almost every week about floods, fires, tornados, droughts, earthquakes, tsunamis, wars, etc. somewhere in the world. Some people think this is partial fulfillment of Bible prophecy before the return of Jesus Christ (see Mt. 24:6-8). In any case, it's becoming clear that food supplies are running low and food prices are on the rise. 10-50% annual increase in prices is not uncommon in many countries, and the rate is only expected to increase in years to come.

Wouldn't it be nice to buy food today at the prices available one year ago? Well, with dry and canned goods, it is possible! Most dry and canned goods can be stored safely for 2-3 before they lose their nutritional value or expire. Thus, if you simply buy enough dry and canned goods for the next 1-2 years, you should be able to lock in today's prices for the same amount of time. Since a penny saved is a penny earned, you can expect to see a nice return on your investment over time. In the event of a disaster and disruption of the food supply in your area, it could even be a means of insuring the well-being of your family.

From purely an investment point of view, storing dry and canned foods makes sense. The only drawback is storage. You must store the food in a cool, dry place and out of the sun. You also must store it in such a way that it is easy to get to the oldest items first. Some people just put new items in the back and move the rest forward, like most supermarkets do. Protection from insects and thieves may also be of concern.

How can you plan food storage? Stan and Holly Deyo have put together a lot of good, free information and resources for food storage. See Dare to Prepare. They even have MS Excel spreadsheet set up for people to plan for their families. You can use your right mouse button to click on the Deyo Food Storage Planner and download it.