🍷History of wine as an asset class

Cultural significance

Wine has been an integral part of many traditions and cultures for centuries now. Egyptian pharaohs drank wine and offered it to the gods during ceremonies. Jesus commanded his disciples to drink wine during the last supper.

Hedonova Trivia :

King Tut, a popular Egyptian pharaoh, was found buried with 36 jars of vintage wine that were supposed to fulfil his thirst in the afterlife as per old beliefs.

What makes fine wine scarce and valuable

The production of fine wine is limited by geography while the demand is increasing each year.

This increasing supply-demand gap has resulted in a steady rise in wine prices over the years and is expected to continue.

While wine worth $500 billion will be produced in 2022, less than 1% of this will be investment-grade.

Hedonova Trivia :

The Bordeaux region in France alone produces around 90% of all investment-grade wine.

Trading of fine wine

Before the internet, the trading of fine wine was mainly facilitated by auction houses. This made fine wine an item that was out of reach of people who couldn’t get invited to wine auctions.

The first recorded wine auction took place in London in the year 1643!

In the last few years, wine exchanges have not only enabled wine trading for all but also made the fine wine market more efficient. Liv-ex, Vinovest Exchange, Cavex, LiveTrade by Bordeaux Index are some of the most popular wine exchanges.

Hedonova Trivia :

Liv-ex 1000 is the most popular index that tracks the performance of wine as an investment asset.