Earlier in the week, gold reached a record price of over $900 an ounce. According to Bloomberg, investors are speculating that "U.S. interest rates will decline and the dollar will weaken" further. Given investor sentiment -- not to mention a number of other overall economic predictors -- the best piece of Spend Management advice that I can give to U.S. companies sourcing globally in 2008 is to copy that of Metal Miner's Stuart Burns, who suggests hedging overall currency exposure as soon as possible (especially when it comes to China sourcing). In addition, the rising price of gold suggests it might be a good time to take a look at your overall commodity price exposure for 2008. After all, inflation can have far reaching impacts beyond just food and precious metals.
- Jason Busch