Why Coffee Might be the True Black Gold
When speaking of black gold, we think about oil. However, there is another natural black gold resource, which is also very important for the world economy. It is ̶c̶o̶v̶f̶e̶f̶e̶ coffee.
Coffee! Its value cannot be underestimated: people across the world consume two billion cups of coffee daily. Let’s take the cost of an average cup of coffee, $3, and multiply that by 365 days a year. You see how fast the numbers add up.
When investing in coffee, one should remember that it is difficult to grow coffee beans Thus, prices depend heavily on the weather, logistics, and even civil unrest, which happens often in Latin America.
For example, freezing temperatures in Brazil in 1975 destroyed almost all the coffee harvest, which led to a fivefold increase of the world coffee prices.
Since the beginning of 2017, the cost of coffee has trended down. This has to do with the news from Vietnam and Brazil, where 2016 was the second biggest harvest of coffee in history.
Analysts predict further sales growth and a decrease in prices. It’s possible that the prices for coffee will keep going down, but that’s not that important for those who make money on coffee.
The most important factor is for the price to fluctuate and be volatile. You can make money on price fluctuations.
Settling business over a cup of coffee? Looking for a good investment tool? You might have the clue right on your table. After roasting, green coffee becomes black gold, and the right investment might turn it into real gold.
