Liquor as a Store of Value
I had quite a bit of liquor left over from my wedding. When I was putting it away, the thought crossed my mind, "I wonder if I can return it?" I thought about it for a moment. I like rum and vodka, the two varieties I had left, so I would eventually drink it all. If not, my wife and I could throw one heck of a party that would take care of our alcohol stock. But when? Would we be through the liquor in 6 months, a year, two years? Would I rather have the cash or the booze? Then I thought about what the price of the drinks might be in a year or two. Given the propensity for the central bank to inflate the money supply at the risk of increasing prices, I expect the price of practically everything to go up over the next couple of years. I see no reason for vodka and rum to be excluded. On the other hand, the drinks are mighty stable. The mojitos and martinis I make next December will taste just as good as the ones I made this weekend with the same libations. So in my estimation, distilled spirits, properly cared for, are a considerably better store of value than the Federal Reserve Note, though that may not be saying much.