Daniele Marano knows that making money by trading wine is not always easy. The former Tullett Prebon credit broker has made big gains on Burgundies in recent years, but bought some of the sought-after 2010 Lafite Rothschild earlier this decade — right before the market tanked.
Still, he and many other investors are trying to find ways to turn a profit from a fine-wine sector that has often left them with severe hangovers. A brutal four-year sell-off to 2015 cleaned out many funds and private investors from the market. Now, investors are once more trying to crack open the sector, attracted in part by soaring prices for Italy’s “Super Tuscans.”
Assets with no yield, but offering the potential for capital growth, have become more compelling in a world of low or negative interest rates on cash and major government bonds. This is particularly the case in less crowded sectors overlooked by other investors, which has spurred interest in esoteric assets ranging from fine art and classic cars to cryptocurrencies.