Summary: In this episode of China Money Podcast, guest Powell Yang discusses Chinese investors’ increasingly important role in fine and rare wine investments. How mature are Chinese wine investors? What common mistakes do they tend to make and what potential returns are they after? Here are his main points: - Wine investment is similar to other commodity investments. The key is to do your own research. As much as 99 percent of the wine produced will never go up in price. Only the very top wines of Bordeaux and some Burgundy wines are traded in high dollar prices. - Everyday investors without deep wine knowledge can still invest in wine by buying the tried-and-true labels. If bought at the right price, it is likely to earn a decent return. More knowledgeable wine investors can explore the up-and-coming labels that could potentially yield greater reward. - With Chinese wine investors growing, wine producers are catering more to the Asian and Chinese markets. They are shifting availability to China and hosting signature wine conventions in locations such as Hong Kong. - The mistake Chinese wine investors tend to make is to chase the market in disregard of the price. They could also be impatient to see their wine collections increase in price, though generally it is recommended to hold wine for at least five years to achieve a reasonable return. Our Guest Today: Powell Yang is director of consignments at Spectrum Wine Auctions, an auction house of fine and rare wine established in 2009. Yang’s primary focus is to explore potential wine investors, particularly in the fast-growing Chinese market. Previously, Yang worked at Anheuser-Busch and Diageo Chateau & Estate Wines, Winebid.com. Spectrum Wine Auctions is a subsidiary of Spectrum Group International, Inc.
