Fox Business reports that a steep drop in fine wine prices means that it could be a good time to purchase that bottle (or case) of Petrus you’ve been longing to try.
The 25-40% drop in fine wine prices over the past year has some investors turning away from stock and bond markets and looking to alternative assets like fine wines. Wine funds buy and sell cases without any intention of drinking them and many require a minimum investment of between $15,000-$125,000.
We’re pretty sure we wouldn’t be able to resist the temptation to drink our “investments”, but for the savvy investor this might be an interesting way to diversify your portfolio. Be wary however, says Christian Moueix,”The idea of collecting and speculating is insane in some way. As my father used to say, ‘another vintage is coming next year.'”
From our perspective it’s a win-win scenario; if your investment goes bad at least you’ll have something to drink.