Investing in coffee: fairy tale or reality?

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Coffee, it is very difficult for a modern person to imagine his life without this wonderful tonic and invigorating drink.

How does your morning begin? With coffee. What do you drink when you have no more strength, but the work around is in full swing? Coffee, of course. Millions of people around the world, from ordinary accountants to the chairmen of large corporations, will never be able to refuse a cup of Americano.

An enterprising person always thinks about making money. Any opportunity to profitably invest funds does not pass by him. If you consider yourself such, then you probably already thought before (or thought now): “Is it possible to   invest in coffee ?” Indeed, taking into account all of the above, you can not worry about the profitability of such an investment, because there is always demand. If you are looking to invest in raw materials, then coffee is a really great option.

Coffee is an agricultural commodity. Moreover, coffee beans occupy a leading position in terms of sales worldwide (if we talk about agricultural raw materials). Around the world, about eight million tons of ready-to-market coffee are produced annually. The main suppliers of the product are Asian and Latin American countries. It should be noted that the wholesale price of coffee beans is twenty times lower than the retail price. Thus, their sale brings colossal profits.

A novice investor first of all thinks about foreign exchange investments or investments in precious metals, as well as oil. However, the opinion that these investments will always bring income is wrong. Just imagine how many factors affect the exchange rate, the value of gold, etc. Here you need to take into account many criteria, such as the global economic situation, the political situation, the reserves of minerals in the bowels of the Earth. Sometimes even experienced brokers cannot give an accurate forecast: the price will rise or fall (and most importantly, by how much). That is why it is worth paying attention to those products, the value of which practically does not depend on any factors. And coffee is one of those.

Despite the opportunity to make money easily, do not rush to invest. For any investment, you need to familiarize yourself with the risk factors (even if they are practically absent). While the demand for coffee beans is always high, the following trading indicators need to be reckoned with.

First, the amount of imported and exported coffee. This is the most important criterion for the value of any raw material. Therefore, you need to have an idea of ​​the trade relations between exporting and importing countries.

Secondly, it is worth remembering about natural factors (we are talking about yield).

Thirdly, the presence of world stocks of finished products indicates the need to produce new ones. Thus, the price of coffee beans may fall if the harvest is plentiful in a particular year.

Even taking into account all of the above, we can safely say that coffee is one of the most stable and safest ways to earn money. Plus, it’s nice to sip on another strong drink knowing that you, too, have contributed to its production.

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