By Eric Brand
Did you take all your money out of stocks and hide it in your socks during the recession? Does your cash-only clinic leave you with lots of cash to stash and no place to put it? The recent economic crash was a shock to many and more than a few people have tried to move to more tangible investments over the last few years. So which Chinese herbs are stable investments?

...

Naturally, many of the products that we use in Chinese medicine need to be fresh. The vast majority of our materia medica requires fast turnover, so every dollar tied up in this year’s Jing Jie is going to be worth only 40 cents next year when that Jing Jie has lost its luster and fragrance. But don’t despair- there are a few Chinese herbs that store very well and increase in value over time.

This blog post is a joke on some level, because ultimately there are many better ways of investing your money than buying Chinese herbs and sitting on them for 5-10 years. However, the Chinese Renminbi (aka Yuan, the currency of the PRC) is constantly increasing in value and the prices of many Chinese herbs are rising all the time. Some items, such as cordyceps, have gone up in price to an astounding degree as their natural reserves decline. Others, such as Jin Yin Hua (Lonicerae Flos) have shot up in price dramatically in response to trends such as H1N1 (Jin Yin Hua costs more than ginseng in China right now). So what are the good buys?

Cordyceps is so expensive that my Hong Kong teachers jokes that I should bring some from Chengdu to Hong Kong simply because the high humidity in Hong Kong will increase the weight by 5%. Over the past few years, I’ve watched the wholesale price for cordyceps shoot up from $5000/kg to $10,000-15,000/kg. The price will only continue to rise as the natural product declines, but it is very difficult to sell cordyceps right now because no one can pay $15-30 per day to take it. On the flip side, the cultivated product keeps going down in price, so there are no safe bets when it comes to cordyceps (even though ultimately the wild price will probably keep going up).

Premium moxa is a safe bet, since moxa increases in value as it ages. Moxa is said to become more moderate as it ages- it gets less hot and extreme, more steady and smooth. The same is true for Chen Pi (Citri Reticulatae Pericarpium)- Chen Pi is said to become less drying and harsh as it ages, and the really old stuff (30 years+) is prized by chefs for fancy dishes. Properly stored, Chen Pi and moxa increase in value over time.

Ginseng is generally a good buy because its price is always on the rise. Mountain ginseng is one of the best things to buy in terms of appreciation over time, but it should be kept airtight and cool because its quality declines over time unless the roots are soaked in alcohol. Soaking ginseng in liquor stabilizes the product and increases its value, since the longer the liquor soaks the more valuable it becomes. The same is true for supplementing wines and hit medicines as well.

Korean red ginseng and Japanese ginseng (Dong Yang Shen) are good investments. Both have increased in price steadily and will continue to increase in price, and both of them age well. Properly sealed, Korean and Japanese ginseng are said to become more harmonious and fragrant over time, and their value increases just like wine. People even have their favorite vintages, and one can buy stored roots from the 1980s or even earlier if one is willing to pay the price. A good sealed tin of nice Korean ginseng would be worth a lot if you gave it to your grandchildren a few decades later. For that matter, if you have wooded land on the East Coast, planting American ginseng is a good investment- letting it grow for 20 or 30 years in the wild will be nice gift for your children.