A Study of the Evolution of High-End Wines in Switzerland
13 Pages Posted: 30 Jun 2012
Date Written: June 29, 2012
Abstract
In this paper, we analyze the evolution of fine wine prices over the period 2000-2010 on the Swiss market. We first estimate a fine wine index with several sub-indices (e.g. Bordeaux index, First growth index) using hand-collected hammer prices from Steinfels – the leading wine auction house in Switzerland. We then study the evolution of these wine indices. Not surprisingly, we find that high-end wines have achieved impressive returns over the last decade, with first growths from the Médoc being the very best performers. They have significantly outperformed Swiss stocks whilst maintaining a weak correlation with traditional asset classes like equities and bonds. These results confirm previous evidence that fine wine can be considered as an appealing alternative investment vehicle.
Keywords: wine, alternative assets, portfolio diversification, risk
JEL Classification: G11, G19, N50, Q14
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