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.