1. A study of the performance of fine wine on the Swiss market
- Author
-
Jean-Philippe Weisskopf and Philippe Masset
- Subjects
Wine ,Economics and Econometrics ,050208 finance ,Financial economics ,Bond ,05 social sciences ,Investment (macroeconomics) ,Agricultural economics ,0502 economics and business ,Economics ,Capital asset pricing model ,Alternative investment ,Foreign exchange ,050207 economics ,Business and International Management ,Investment performance - Abstract
This paper studies the price evolution and the performance of an investment in fine wine on the Swiss market over the period 2002-2012. Using a repeat-sales-regression approach we calculate different wine indices based on auction hammer prices obtained by Steinfels Weinauktionen. Our results show that different fine wines followed a similar evolution across the sample period but that the amplitude of returns strongly depended on wine regions and types. While Bordeaux and Burgundy wines performed well, wines from the Rhone valley and Italy show a poorer performance. Compared to financial assets wine has significantly outperformed stocks, but not bonds. We further find that the Swiss franc appreciation has had a significant impact on wine prices.
- Published
- 2016