Champagne and Burgundy lead boom

swifterm.com

4 points·SwiftERM··3 comments

Wine as an investment is interesting. I consider it a hedge against inflation where stock usually underperform (and commodities outperform), but also against global warming due to the delicate nature of producing fine wine. We’ve already seen the effects of very warm seasons in France and Italy and if temperatures just keep rising, winemakers producing high-end wine will have to look elsewhere for grapes.

An average of 8% a year with lower risk[1] than stocks is quite attractive, but I cannot help but think that wine should be paired with a nice meal and shared with friends instead of traded/invested. However, when investing in wine, nothing stops me from drinking my investment!

[1] https://www.rarewineinvest.com/why-invest-in-wine/

> but also against global warming due to the delicate nature of producing fine wine.

Historically Burgundy had one or two warm (aka fully ripening) vintages per decade. In some ways global warming is helping marginal regions (from a ripening perspective) produce better fruit vintage on vintage. Also, there are viticulture and pruning techniques that can be leveraged to minimise heating stress on vines during vintage, and the Burgundians are using them.

If anything, warmer starts to spring followed by multi-day frosts after bud break are arguably more damaging to any given vintage when compared to hotter growing seasons.

Liv-ex and the other people who are leading the 'wine as an investment' bandwagon need to f right off. I love burgundy, I've even gone as far as spending a week there tasting at domaines. And I'm sick and tired of the price inflation that comes from people that don't care about the wine and instead buy for investment purposes.

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