Euro crisis could spark wine investment boom

21 May, 2012

Fine wine could become much more attractive to investors if the crisis in the Eurozone deepens, according to FT investment columnist John Authers.

He told the LIWF conference that along with silver, gold and art, wine is a non-correlated asset, meaning it is not directly correlated to stocks or bonds.

Like gold, that makes it less of a risky investment.

Authers said: “Wine is a very attractive addition to a portfolio because it is less volatile but still makes lots of money.”

Another part of the attraction is that wine is seen as giving investors exposure to China.

Authers said wine has the potential to become a stock market bubble. He noted that when Lafite Rothschild and Mouton Rothschild tailored their labels to the Chinese market they saw a huge spike in prices, which later returned to their original level.

“There are appealing bubblicious tendencies in this market as an opportunity for the cynical hedge fund manager,” he said.

But Authers warned that any surge in interest in wine investment would probably be short-lived. 

Jancis Robinson MW, speaking at the same conference, said: “The one thing that makes me saddest about wine is that nowadays I am expected to give investment advice. Personally I feel that that is not what wine is for.”

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