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Garlic Investors Smell Money

Hoarding, speculation create garlic millionaires in China

By Rob Quinn,  Newser Staff

Posted Nov 28, 2009 2:02 PM CST

(Newser) – A massive rise in demand for garlic is making plenty of people in China stinking rich. Prices in China—the world's largest garlic producer by far—have risen 15-fold in big cities and even more in far-flung regions. Two key factors seem to be behind it: garlic's reputed powers to ward off the flu—some schools are hoarding it in fear of H1N1—along with old-fashioned speculators, reports the Independent.

"You need a warehouse, a lot of cash and a few trucks," one analyst tells the Financial Times. "Basically, what you do is try to arrest as much supply as possible, then you bid up the price. Moving garlic from one warehouse to the other, you make millions of dollars."

A woman in Hong Kong wears a few cloves of garlic around her neck to ward off disease.
A woman in Hong Kong wears a few cloves of garlic around her neck to ward off disease.   (Getty Images)
Price rises are creating garlic millionaires in China but the bubble is expected to leave many with their fingers burnt.
Price rises are creating garlic millionaires in China but the bubble is expected to leave many with their fingers burnt.   (Shutter Stock)
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COMMENTS
Showing 3 of 14 comments
riffran
Nov 30, 2009 1:49 AM CST
awww come on count..puns are fun...the worse the better....and as much as it pains me...thumbs up there cat.. :)
cognitivefilter
Nov 29, 2009 6:25 AM CST
psh, i eat so much garlic and i still got the flu
riffran
Nov 29, 2009 6:14 AM CST
@ greek...uh..guilty as charged..never heard of it...thanks...I'll go look it up

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