The most investable fine wines have done well over the past decade and studies indicate they have low correlation with traditional assets. Finite supply of the great investment wines, portability and relatively low storage costs are an advantage. There also has been huge growth of demand from prestige-oriented drinkers in China and other emerging markets.

However, this is a double edged sword: while Chateau Lafite, the wine to serve to impress your regional party boss in China, has surged in price, so has fraud. By some estimates the amount of Lafite drunk in China last year exceeded total yearly production by almost 10 times. Wine investing requires storage charges, and wine funds are often quite expensive. Due diligence and caution are key in selecting advisers and storage places, as instances of fraud and overcharging are far from unknown.

16th August,2012.

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