Buy Your Coffee Now, Prices are Set to Soar

If you are a lover of coffee you are going to be extremely disappointed to hear this, but due to the bad weather in Columbia and Brazil the price of coffee is set to soar in the coming year. The price of coffee is already up 60% this year, and there are projections that the price of coffee will further increase another 40% this year. As such the primary purveyors of coffee have to face a very difficult decision, they can either pass the price increase on to the consumer, or they can eat the extra cost and have it cut into their profits. Obviously with the weak economy it is difficult for any retailer to pass on price increases, but as the price of almost every commodity continues to rise, there is only so much that retailers can do in terms of absorbing the extra cost. This is of course bad news for companies like Starbucks, which have recently rebounded somewhat after getting slammed by the recent economic crisis.

The real question is what can the average coffee consumer do, the one that already started saving money by brewing his or her own coffee at home, rather than spending the money at coffee houses such as Starbucks. It is unlikely that the coffee beans and coffee grinds that you use to brew your own coffee will stay the same price, so in the coming year you can expect the price of the coffee you buy to brew coffee at home will be up 40% next year.

As such it is recommended that you stock up on coffee beans now and freeze the beans, this will be a wise investment if you like coffee. So in a way you will become a commodity investor, and you should be able to profit the same way that those that have invested in gold have profited in the past few years. And the nice thing is that even if prices don't go up you will still consume the coffee either way, and one thing is for sure, the price of coffee is unlikely to go down anytime soon. So go the store and stock up on your favorite brand now while the price is still affordable, you will very happy this time next year when you go to the store and see the price that is 40% or more higher than it is today.

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