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Aside from
the presents, getting the biggest Turkey in the shop, making sure the house
is warm and festive and the compulsory family argument the other tradition at
Christmas is the vast expense it costs us all.
Christmas
has always been expensive but over the past few years it seems to have really
crept up. Whilst factors such as weather conditions are frequently blamed on
meat and vegetable price hikes our research shows that when the Christmas
dinner is priced in gold oz or gold grams, rather
than British pounds or dollars, prices haven’t crept up anywhere near
as much, and in some cases are going down in price.
So whilst
governments can argue that price increases seen in food overall remain below
the inflation measurement basket, it suggests that the real rate of inflation
is significantly higher.
Christmas
is celebrated by over 160 countries, each with their own traditions. And
within them each family has their own ways of doing things. Here in the UK,
and in the US, we have the traditional Christmas meal which usually comes
with Turkey and all the trimmings.
According
to the grocer.co.uk the price of the UK traditional dinner has increased by
14.3% in the last four years. However when we put it convert the cost into
gold ounces the price has in fact decreased by 35%.
Turkey ‘aint so bad
The cost
of meat is one of the biggest gripes today, but is the price going up or is
the value of cash going down?
In the UK
we have seen a 14% increase in the cost of frozen turkeys since 2008 when
priced in British pounds. However, when priced in gold oz
we see a decrease in the average price of a turkey by over 34%.
Around
Thanksgiving the US media pounced on the increase in the cost of turkeys.
Something which they were unable to explain given the increasing number of turkeys
farmed every year. Yet the price keeps rising. In the US, the situation is
even more dramatic when looked at since 2000. The price of frozen turkeys
when priced in dollars per lb has shot up by over
60% since 2000. However, when priced in gold ounces per lb
it has fallen by over 60%.
Eat your greens…if you
can afford it!
And what
about the vegetables? Well, looking at the price increases here we can see
why it is so expensive to maintain a healthy diet these days.
Brussels
sprouts, or as I like to call them ‘the parent’s revenge’
have gone up an extortionate amount, nearly 70% when priced in British
pounds. But when priced in gold ounces the price change in percentage terms
is just over 2%, and it’s a decrease.
It’s
the same situation for carrots. When you look at it on a month by month basis
you see the price can be quite volatile, but it has clearly been decreasing
when priced in gold oz.
We find a
similar case for the other vegetables which dress our Christmas plates,
including potatoes.
And what
about that time old classic – mince pies? We don’t just eat these
on Christmas Day in the UK, they’re a general December fixture and
their popularity doesn’t seem to be waning. Yet despite the same
demand, why has the price increased by 5.7% in the last 4 years? It
hasn’t, not when priced in the faceless currency that is gold ounces
– instead it has decreased by 39%.
“Do you take gold
ounces?”
Of course
you can’t go and pay for your Christmas food in the shop with your gold
ounces.
However,
it might be worth thinking about putting your Christmas budget into gold at
the beginning of the year, then your Turkey might
not turn out to be so expensive after all.
Want protection from loose monetary
policies? Buy gold online in minutes…
Please
Note: Information published here is provided to aid your thinking and
investment decisions, not lead them. You should independently decide the best
place for your money, and any investment decision you make is done so at your
own risk. Data included here within may already be out of date.
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