Thinking of investing in wine? Think again.

Every now and then I receive mail from people starting up a new wine investment business. They spring up as reliably as mushrooms after rain. Invariably, their proponents overstate the potential to make money out of investing in wine.

An article analyzing the potential of wine investment was recently published online by The Conversation. It’s worth reading. The link follows.

One aspect not discussed in this piece is the availability of the few wines that have investment potential. I recall a few years ago a major firm of analysts published a report saying what a great investment wine was, but the wine they based their figuring on was 1971 Penfolds Grange (tasting), completely ignoring the fact that supply of this wine was extremely limited. Likewise, the availability of the world’s great investment wines has dried up during the past decade or so, since wealthy people all over the world have cottoned onto them. You simply cannot buy many of these wines any more.

Discussing this subject recently, a friend who buys a lot of top-end wine mentioned that he used to buy two or three mixed dozens of Domaine de la Romanée-Conti (tastings) Burgundies every vintage; these days (since the 1999 vintage) he’s lucky to get two bottles.

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