Fine wine profits better than stocks, oil
* Source: Global Times
* [00:47 December 25 2009]
* Comments
By Yu Miao
Investment in Bordeaux red wine brings greater return than the stock market, property, oil, stamps and fine art, London's Daily Telegraph reported Thursday.
Citing research by the London International Vintners Exchange, the paper unveiled that a 12-bottle case of 1982 Lafite Rothschild has jumped in price by 857 percent in the past 10 years, from 2,613 pounds ($4,182) to 25,000 pounds ($40,012).
However, the newspaper's wine editor, Jonathan Ray, poured cold water on wine col-lection because it is a shame the wine has never been drunk.
"It is an amazing wine and it is a great return on your investment. But wine is made to be drunk and it should not be used as an investment tool," Ray said.
"You would have had to have been quite well-heeled to afford the wine in the first place, but congratulations to the individual who had the foresight and the money to make the investment."
The report quoted James Miles, director of Liv-ex Fine Wine, as saying, "The fine wine market has transformed in the past decade, with global turnover increasing from under $1 billion a year to more than $3 billion."
"The 'noughties' have also seen fine wine move from being a niche investment for gentlemen into one that is considered increasingly mainstream by the investment community," Miles added.
A research by Liv-ex showed that equities had dropped 17.5 percent from the end of December 1999 to November 2009, compared to a 9 percent rise in fine art, a 61 percent return in collectible stamps and a 118 percent rise in residential property over the same period, the newspaper said.
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