-- Posted Thursday, 13 December 2012 | | Disqus
By Jan Skoyles
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.
After graduating from Aston University, Jan Skoyles joined The Real Asset Co research desk. The Real Asset Co was launched by experienced financial professionals to provide investors with a secure and efficient way to invest in physical tangible assets.
-- Posted Thursday, 13 December 2012 | Digg This Article | Source: GoldSeek.com