Sun 19 Mar 2006
Investing in Wine
A way to achieve diversification is perhaps to invest in Wine.(?)
Quote: “Record wines sold recently at Sotheby’s include a case of 1989 Domaine de la Romanée-Conti Burgundy, which fetched $85,187 in November in New York, a single bottle of 1978 Romanée-Conti, which sold for $11,163 in December, and two cases of 2000 Château Le Pin Bordeaux, which fetched $37,600 each - while those were exceptions.”
Wine index
Quote: “Liv-Ex 100, an index created by the electronic London International Vintners’ Exchange, is a broader barometer of the market. The index contains some of the most- traded wines from Bordeaux, Burgundy, Champagne, the Rhone and Italy from 1982 to 2003.”
Long term return
Quote: “What kind of returns might wine investors expect? Andrew Davidson of the Vintage Wine Fund said returns over the past 20 years have been 10 percent to 17 percent annually. The problem is there are no guarantees. “The values do plunge,” Burr of Uvine said.”"