The Study Of Fine Wine Investment Based On Multi-Currency

Fine wine is a kind of investment goods as well as collectibles. Thanks to the abilities of risk-averse and inflation-protected, fine wine has become one of the best-welcomed investment goods in the international market. Factors that affect the performance of fine wine investment should be considered in order to make right investment strategies due to its own characteristics, which is the hotspot in fine wine study area. Currency is a key index to reflect the situation of world economy and investment’market performance. To investigate the relationship between currency and fine wine will help to achieve the objective of making right fine wine investment strategies. Considering the situation that fine wine are affected by multi-currency simultaneously, this paper focus on study the relationship among multi-currency and fine wine, from where provides effective reference information for investors.This paper adopts qualitative and quantitative research methods. By using related monthly data refer to multi-currency and fine wine through2003to2013, models such as VAR and VEC are built. The inherent relationship among multi-currency and fine wine are figured out by empirical study.Three conclusions are achieved. First, fine wine index has increased gradually since2003. The fluctuation was gradual when faced with economic crisis. Fine wine investment can make contributions to raise portfolio diversity. Second, the mainstream of the world currency can affect the performance of fine wine investment. The influence degrees are different. Fine wine plays the difference roles in difference countries like collectibles, investment goods, etc. Third, fine wine index can advance insight into the financial market as it can be seen as "the rich index". Combining with behavioral financial theory, this paper analyzes the phenomena of fine wine investment from the angles of both market and investors. Related strategies are given based on this. Finally, this paper focus on discussing the development of China fine wine market, and provide reasonable suggestions for Chinese investors.