We wine lovers generally think about how to turn our money into wine. But apparently there are those who think that wine can turn into money.
The Wall Street Journal had a big story on page B1 over the weekend about the new phenomenon of wine investing (no free link to the story, “Fine Wines No Longer Just Tempt Collectors”). In London, the Fine Wine Fund has been set up with the goal of investing in wine. They charge fees similar to a regular fund for alternate investments with a two percent annual management fee and 15 percent of the profits.
Is making money out of wine a panacea? Post your thoughts in the comments! One thing is for sure: while the story doesn’t mention the size of the Fine Wine Fund, if a lot of money sloshes into the relatively small market for investment-grade wine, prices will likely go to even more eye-popping levels. Let’s just hope that some corks get popped along the way too.
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Steve Bachmann was quoted in the story talking about inefficiencies in the wine market. You can check out his thoughts on how to value wines on his blog, The Wine Collector. He’s also the CEO of Vinfolio, a fine wine retailer.