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East Central SD | Gold vs corn
Not sure we can compare ratios of mineable commodities with raised commodities. Your comparing a finite resource to an infinite resource.
Land vs corn
Corn isn't the only thing that factors into the value of land. Govt payments, carbon payments, crop insurance guarantees all have a role but mostly it's just a matter of having the liquidity to make the purchase. Many farmers are worth millions and if they have any kind of ROE at all plus pay themselves for management and labor they easily make more than they can spend on family living in a year. Which leaves a decent amount to put somewhere and since this is what we know we buy land. Really isn't any different than the overvalued housing market. The prices don't make sense but those that can afford them just pay the price necessary.
In reality you just need to be Warren Buffet here and sit on your 335 billion in cash and wait for a buying opportunity. Your other option is to play along and realize not every investment has to be perfect. | |
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Gold is on a tear
