Interesting: Wine has recently outperformed all other investments. This will change, as everything does, but it is interesting.
That performance has something to do with the fact that unlike old paintings or collectible gold coins, a vintage of collectible wine is removed from the market as it is drunk, thereby becoming scarcer and scarcer. This was the premise of my own Great Wine Experiment, which I began in about 1980.
However, it also has a lot to do with the recent growth of wealth in China. In particular, a popular television show depicted a popular couple enjoying a bottle of Chateau Lafite (a First Growth Bordeaux wine), and suddenly Lafite prices went through the roof as wealthy Chinese sought to buy Lafite. An international wine broker told me that we are definitely in a Lafite bubble, as a result of that TV show.
Meanwhile, the Chinese continue to buy Bordeaux, and particularly Lafite. American sellers are obliging them.
One interesting point is that the Chinese businesspeople tend to receive these wines and immediately drink them, such as at a business lunch (!). That is in sharp contrast to the US and UK, where such bottles are cherished and opening one is a big deal for a major occasion (if it is ever opened).
Bubbles are fascinating. Will be fun to see where this one leads. Perhaps India is next to buy Bordeaux!
And, a warning: I have learned the hard way that the selection of wines for long-term investment, there are many potential pitfalls. Do not undertake it unless you are prepared to do it correctly. Contact me, if you're interested in learning more.
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