Jan 30, 2012

Wine, the new speculative world?

Buying wine like buying stocks option, few people do that 
and it is a growing trend. 

Beautiful bottles taking value in a cellar, thousands of French people have it,
usually with the aim to drink it one day. 
This time, the approach is different, It represents a true investment.

Should we invest in wine?
Some investors do not even know the wines they have in their cellars....
They will never see the bottles from the moment they buy and when they sell.
And the sadest, they will never drink them!

What companies can offer these types of investments?
There are only young and rare companies.
They are called Patriwine, Cavépargne or Bergère investissement
This is an SME working in trading, a traditional activity.

And then, about two years ago, some customers expressed
their desire to speculate on the wine. 
Camille Benoist, the manager, creates a real portfolio
and he manages currently 150 wine substitute shares.

Customers buy wine, but the company stores it.
They can sell it whenever they want, in full or just a part but of course, 
they can also get it for drink, It is very flexible.

When investors have doubts about banks and financial investments, it looks like a perfect remedy. Especially because Asia is more and more concerned.

It represents a huge market that loved beautiful labels, 
especially “Bordeaux great growths”. 
Prices of some bottles increase with this Asian demand. 
But it is a very small market. 
Stocks are limited, especially about Classified Growths.



Risk of this speculative bubble is that it could bursts and prices collapse.
For now, this bubble inflates and it annoys wine lovers.

Among them Philippe Faure Brac, which has Le Bistrot du Sommelier in Paris. 
He was awarded world's best sommelier in 1992. 
Some bottles seem to him inaccessible at this time.

China has invested heavily in the wine market in 2009 and 2010. 
Prices rose sharply for the most prestigious labels.
The course is still rising today: an increase that settles around 15% for 2011 though.


Wine is a great passion for us, not a stock option...
happily there is sill a lot of great little wine growers to discover around Bordeaux!

Cheers

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