In Investments for Preparedness and Wealth Preservation That Your Financial Adviser Will Never Mention, we outlined several non-traditional ways to invest your money for protection from a variety of different calamities ranging from financial stock market meltdown to outright economic collapse. Food, of course, was one of our key portfolio holdings for a number of reasons, including the obscene price increases for core agricultural commodities over the last two years and the fact that, as an investor, you have no counter-party risk because the physical asset remains in your possession until such time that it is needed.
As demand for commodities continues to rise due to an ever expanding global population, price inflation climbs because of monetary easing, and systemic meltdown fears among the populace become more broadly accepted, more individuals everyday are turning to preparedness investments that include food, gold, guns, and medical supplies. The prepper movement has gained so much steam, that some manufacturers, including freeze dried leader Mountain House Foods, report an inability to keep up with demand.
If you failed to take our alternative investment advice a year ago, then missed it again in our 2011 recommendations, and are still contemplating where the general price and supply trends are headed, consider the most recent price moves in Cosco’s freeze dried food line.
While Mountain House freeze dried food is backlogged and distributors report months-long delays, Shelf Reliance freeze dried, distributed via Cosco is still available (for now) – albeit at an ever increasing price point.
Via Zero Hedge:
Back in October, Zero Hedge discussed a Costco offer for Shelf-Reliance THRIVE’s one year’s supply of dehydrated, freeze dried food, better known as “apocalypse rations.” Six months ago a one year’s supply of food for one person which included 5,011 total servings (84 #10 cans) could be purchased for $799.99 (the link for the offering is here, or rather was, here). A series of events made us encounter a comparable THRIVE offering at Costco. To our amazement in six months, the real price inflation in apocalypse rations, when factoring proportioning, is almost 50%! While the original set that was presented back in October is no longer available, what Costco does offer is a Shelf Reliance THRIVE 6 month supply supply for the price of $579.99: this represents the pinnacle of that ultimate in inflation disguising techniques: cutting the price by X while cutting the amount offered by Y>>>X. Indeed, to last a person a full year, one would need to be two of the 6 month supplies for a price of $579.99 or $1,159.98. And even that has to be indexed: the current set has 2,470 total servings, whereas the previous offer had 5,011, or 203% more. In other words, to index for the proper serving ratio the final price is actually $1,176.65. We can only hope that there are those who purchased this product when we first presented it (and don’t worry, with a 25 year shelf life, it lasts a looooong time) and saved themselves the 47% inflation in 6 months! And then there are non THRIVE product offerings, such as the one below for 2 people for 3 months for $999.99 (and includes its own 55 gallon water storage set), which represents price inflation well over 100% for those who need a little extra caloric kick (and, naturally, post-apocalypse social status with the neighbors). Something tells us in another 6 months, the Costco price today will be just as lamented as the price from 6 months ago currently is.
And for those for whom greeting apocalypse in style means price is no object…
Expect the trend in price to continue, and consider acquiring freeze dried food as a part of your complete food preparation plans, because at some point, Shelf Reliance may not be able to keep up with continued demand in the preparedness market segment.