Garlic Attractive to Speculators

To some, it is nothing more than a strong-smelling vegetable that is best avoided before an important date or meeting.  To others it is an essential cooking ingredient.  To many, it is now an interesting investment opportunity: Garlic.

Yes, garlic has increased in value up to 40-fold in China, where the largest proportion of the world’s garlic is produced.  No-one is quite sure what the exact reason for the sudden boom is – it has risen sharply since March – but there are a few reasons possible:

– Garlic is viewed as an important health-giving ingredient in China.  Many believe it could ward off swine flu and are therefore stockpiling it

– Producers planted less crops this year in anticipation of the great recession.  Meanwhile, banks pumped the economy with extra cash.  Along came speculators who bought great quantities of the vegetable before it had ripened, in anticipation of a growth in demand.

So, if you are thinking of entering the CFD derivatives or commodity trading market, why not consider garlic?

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