For many recent decades, oil was the new gold due to the increasing demand for crude oil purely due to modernization and development of countries. We are all affected by the price of crude oil even if we do not drive as indirectly utilities and other things with a tiny link to it have increased.
Today, or rather for the past few weeks, corn, wheat and rice are the "new gold" for the same reasons. These commodities have become star performers and have hit all-time highs.Rice, a staple food for about 3 billion people worldwide has doubled ove the past year.
Many media have reported on the increase in the price of rice, and fears of a shortage in supply.The World Bank estimates 33 countries around the world face potential social unrest this year because of the acute hike in food prices. Many predicted there will be no margin for survival for these countries.
Record food prices are causing global inflation and forcing governments from China and India to take measures to protect supplies domestically. If protectionism kicks in all rice-producing countries and food-exports are curbed, prices could spike further. It is a vicious cycle.
Prices are of course a matter of supply and demand. It is correct to say that supply of crops have been hurt by unusual weather around the world. But i think the media have played a huge part in increasing the prices of rice. Speculators around the world have caused a panic rush for 'stocking' the rice and this causes vendors to jack up the price.
Today, or rather for the past few weeks, corn, wheat and rice are the "new gold" for the same reasons. These commodities have become star performers and have hit all-time highs.Rice, a staple food for about 3 billion people worldwide has doubled ove the past year.
Many media have reported on the increase in the price of rice, and fears of a shortage in supply.The World Bank estimates 33 countries around the world face potential social unrest this year because of the acute hike in food prices. Many predicted there will be no margin for survival for these countries.
Record food prices are causing global inflation and forcing governments from China and India to take measures to protect supplies domestically. If protectionism kicks in all rice-producing countries and food-exports are curbed, prices could spike further. It is a vicious cycle.
Prices are of course a matter of supply and demand. It is correct to say that supply of crops have been hurt by unusual weather around the world. But i think the media have played a huge part in increasing the prices of rice. Speculators around the world have caused a panic rush for 'stocking' the rice and this causes vendors to jack up the price.
This is not helped by the food stalls that increase their prices for their food as they sell it to consumers. For example, how did the price of one plate of chicken rice surge from SGD3.00 to SGD3.50 when the price of rice did not increase at the same %. As such, such increased are simple caused by greedy people in the world.
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