Contango

Wines... why not?

Chateau Margaux wines.
Source: french-old-wine-club. 

Trophy wines are going up in prices like champagne bubbles. Apparently, positional goods are in strong demand as a consequence of globalization —which has widened the wealth gap, exacerbating the numbers of the filthy?? rich. So a bottle of Petrus 1987 vintage, which used to carry a £65 price tag 10 years ago , sells for £1,000 nowadays... in excess of 15x, a whopping 31 % annual yield.

According to this post from Gideon Rachman:

Some people reckon that it is all a bubble, and that the prices of the top wines will come crashing down. I don’t believe it. The supply of the fanciest Bordeaux wines is limited by the fact that they come from a specific vineyard. But the demand for them will only swell, as globalisation ensures that the number of new billionaires in search of “positional goods” keeps rising. In a few year’s time, a case of Pétrus 2005 for £22,000 may seem like a bargain.

Only 250 hectares of vineyards at Chateau Margaux according to Bert from wineterroirs. I like that... especially, if the Margaux investment goes south, you can always call your friends over and throw a very nice... wine party.

Check: Position goods.

Merry Christmas

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