Tuesday, January 20, 2009

The Great Chinese Tea Crash

Gold's down, silver's down. Tea's down in China and that's even scarier for them than the crash of precious metal.

Pu'er tea, a pricey health drink that was China's version of Starbucks coffee, is crashing. And that's terrifying to wholesalers, farmers and everyday Chinese who invested in the fermented tea disks as a 'safe' investment.

A third of the three thousand tea manufacturers and merchants have gone belly up , and a product that sold for $150 a pound now sells for $15. Tea trees are being ripped out and replaced with crops you can eat - corn and rice.

It was another bubble - a trendy investment fueled by speculation and hype. And now it's just a cup of tea.

1 comment:

Politicol News Staff said...

Nice blog you have here, and very interesting topics, will return. I found you on Twitter through a friend of mine, gee its great how that works out.