Sam's Club (WMT) and Costco (COST) have begun limiting bulk sales on some rice varieties at some stores across the U.S.
People were buying them in large quantities, and to ensure their continued availability, the warehouse clubs initiated a limit on how much each person could purchase.
This run on rice was not made by individuals as much as by restaurant owners and small food producers who had concerns about rising prices and who determined that it was in their interest to stockpile because they believed rice prices were going to continue to rise. The truth is that while there is tightening in both domestic and international rice stocks, there is no shortage of rice in the U.S. at this time.
While food shortages and rising food prices have resulted in riots in a number of impoverished countries, these scenes aren't likely to reach the U.S. and there is absolutely no need to start hoarding food. That being said, stocking up your pantry can be one of the wisest short-term investments you can make if you have the space and the cash to spare.
Even better, buying food and other products that you know you're going to need over the next six months to a year instead of buying them when you need them can give you double-digit returns. The key to getting these returns is knowing how to go about it.