The Price of Wine

50 Pages Posted: 7 Sep 2013 Last revised: 19 Mar 2016

See all articles by Elroy Dimson

Elroy Dimson

University of Cambridge - Judge Business School; European Corporate Governance Institute (ECGI)

Peter L. Rousseau

Vanderbilt University - Department of Economics

Christophe Spaenjers

HEC Paris - Finance Department

Date Written: June 4, 2015


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.

Keywords: wine prices; alternative investments; price indexes; psychic return; bubbles

JEL Classification: C43, D44, G11, G12, Q11, Z11

Suggested Citation

Dimson, Elroy and Rousseau, Peter L. and Spaenjers, Christophe, The Price of Wine (June 4, 2015). Journal of Financial Economics (JFE), Vol. 118, No. 2, 2015, pages 431–449, Available at SSRN: or

Elroy Dimson

University of Cambridge - Judge Business School ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom
+44 700 607 7390 (Fax)

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels

Peter L. Rousseau

Vanderbilt University - Department of Economics ( email )

Box 1819 Station B
Nashville, TN 37235
United States
615-343-2466 (Phone)
615-343-8495 (Fax)


Christophe Spaenjers (Contact Author)

HEC Paris - Finance Department ( email )

1 rue de la Liberation
Jouy-en-Josas Cedex, 78351

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