Many investment legends, from Jim Rogers to George Soros, are beginning to speak up about the tremendous food shortages that tragically are developing all around the world.
Exploding populations, water shortages and weather extremes are all playing a part. Governments on every continent are prepared to throw large amounts of money toward the food-growing industry, and this should be good for agribusiness.
The shortages of specific types of food, from corn to sugar to meats, will lend itself to rising prices as demand begins to outstrip supply. This is why legends like Rogers also like silver and gold, and especially silver since its price is further away from it's all-time high. Higher food prices usually contributes to higher gold and silver prices.
That's just one reason that pretty soon investors might be buying more of a silver ETF like SIVR, or scooping up a silver royalty company shares like Silver Wheaton (NYSE:SLW) or a silver producer like Silver Standard Resources (NASDAQ:SSRI). Goldcorp (NYSE:GG) recently purchased junior silver producer Canplats, which will help increase its annual silver output.
Currently, the U.N. believes that over 1 billion individuals face hunger. In November, global food prices jumped 7%, according to the United Nations Food and Agriculture Organization. This is the largest jump since February 2008. The equity-backed Market Vectors Agribusiness ETF is probably the best way for investors to benefit from the growth in agribusiness which will receive billions to stave off world hunger.
For the record: DBA and MOO look like they may be due for a correction and we might want to plan on buying after that correction unfolds.
Disclosure: Long SIVR, SLW