- Gold and wine prices that tracked each other in the past decade amid demand for alternative assets
- The Liv-ex Fine Wine 100 Index (measure represents 100 of the most sought-after fine wines that have a strong secondary market) tripled in the past 10 years and gold advanced fourfold.
- But, the wine fund is up 5.9% this year, with gold down about 17%
“They’re both physical assets that have their own intrinsic value,” said Chris Smith, a London-based investment manager at The Wine Investment Fund, founded in 2003, the same year as gold ETPs. “Wine becomes attractive when people are a bit uncertain about the economic environment. Now that governments are pumping money into the economy all around the world, that should in theory lead to inflation at some point.”
Yeah … right.
