American Association of Wine Economists note that the value of wine as an investment.

Summary

This article provides three arguments why the wine is good value as an investment has always been underestimated and argues that investing in wine is a suggestion for a good value. It is argued that, in general, underestimated for all investors, the velocity will be the return of vintage wine, that comparisons with previous statements of income, exaggerated provides the value of financial assets series for the wine and the wine a good investment relationship within

1st INTRODUCTION

Altogether, the literature suggests that the return on investment is not a cat

profitable. See Fogarty (2006, p. 544-5), a tabular summary of the details of the return to the literature of wine. The work presented in this paper show that the existing literature has the potential value of investing in wine to be underestimated.

It is argued that the value of the wine has been underestimated as a good investment for the following reasons. First, as the quality of a given period, the wine is well known in advance, are the investors do not invest in wine, bad harvests. This means that the price index of the wine on the basis of a return to all vintages of wines to underestimate their performance with the typical investor wine.

As opposed to the return of the business literature is usually a return to the index of all vintage done, these comparisons understate the change obtained by the typical investor wine.

Secondly, in some countries, yields of wine is not taxed, while income from investments is taxed as a standard.

For comparisons with performance in the literature usually

pre-tax returns understate these comparisons the value of wine

Investment.

Third, the framework for assessing the value of wine as an asset class not to compare the risk-return profile of wine compared to other asset classes, but to assess the role development of the wine (1952) Investments Markowitz Efficient Frontier.

Although the return to wine is below the standard of financial assets and the highest risk, if the wine is included in an investment portfolio reduces the risk of the portfolio, the wine should be viewed as an asset class worth it.

The paper proceeds as follows. The second section examines and discusses some additional specific costs incurred by investing in wine. The third section deals in detail the proposed three reasons to believe that literature has the potential to underestimate benefits of investing in wine, and provides examples to illustrate the points.

2nd Some of the specific cost of the wine

Wines with investments against a range of costs, consider the specific wine

Investment. The most obvious of these costs are the costs of storage, but the transaction costs

Wine Business are also reducing transaction costs in negotiations in the number of financial assets:

The wine must be in a cool, damp and dark, preferably in the daily temperature fluctuations are to be stored is minimal. For those who are not a basement, which is the majority, there are several ways: by building a cellar dug in the order you install one or more images of the regulation of climate and humidity of wine, or for the use and pay for storage facilities in building a wine storage.

The best offer came from a capital cost of storage, including brokerage, eliminates the main cost factor in comparison to all the total investment. Obviously, these companies are more than those who are not on this face, because obviously there is a better return on investment.