It wasn't always that way. Texas had been known as the "Longhorns" for years, but before a group of students dragged a gaunt, frightened steer onto the field at halftime of Texas' Thanksgiving Day game against A&M College of Texas in 1916, the preferred mascot was a dog. UT alum Stephen Pinckney had spotted the orange-tinged longhorn on a cattle raid in Laredo and bought him with $1 contributions from 124 fellow alumni. It arrived just in time for the A&M game on a boxcar with no food or water.
Friday, November 26, 2010
Gold/Cow (or steer) ratio
Here is a data point that, I think, supports my "own livestock over gold" position.
Steer prices in the early 1900's were 10 to 15 cents per pound, live weight. The steer in question here was likely a 1000 lbs, give or take, and went for $124. Gold at the time (let's use the entire decade's range) was $15 to $35, ergo the gold/steer ratio was 3.5/1 giver or take... today it is roughly 1/1. While this is by no means a perfect metric, if you have significant assets my bet is 1,000 head of cattle and pasture land will be a far better investment (if MANAGED) then would be 1,000 ounces of gold.
In my opinion.... either Gold comes in or food prices leave 100 million "food insecure" here in America because food prices, especially meat, milk and perhaps even eggs, would need to rise a great deal to high support corn, wheat, rice... which in turn have helped drive gold through by signaling inflation... and I really don't think producers are in ANY POSITION to pass costs on to consumers... you can draw your own conclusions.
Oil is still the $64,000 question.
Posted by The Short Story Man at 7:38 AM