Articles

The price of wine

E. DIMSON, P. ROUSSSEAU, C. SPAENJERS

Journal of Financial Economics

novembre 2015, vol. 118, n°2, pp.431-449

Départements : Finance, GREGHEC (CNRS)

Mots clés : Wine prices, Alternative investments, Price indexes, Psychic return, Bubbles

http://dx.doi.org/10.2139/ssrn.2321573


Using historical price records for Bordeaux Premiers Crus, we examine the impact of aging on wine prices and the long-term investment performance of fine wine. In line with the predictions of an illustrative model, young maturing wines from high-quality vintages provide the highest financial returns. Past maturity, famous châteaus deliver growing non-pecuniary benefits to their owners. Using an arithmetic repeat-sales regression over 1900-2012, we estimate a real financial return to wine investment (net of storage costs) of 4.1%, which exceeds bonds, art, and stamps. Returns to wine and equities are positively correlated. Finally, we find evidence of in-sample return predictability


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