Salient to Investors:
Gold and wine prices that tracked each other in the past decade are now diverging.
The Liv-ex Fine Wine 100 Index tripled in the past 10 years and gold advanced fourfold.
Ric Deverell at Credit Suisse said gold may drop to $1,100 an ounce in a year and below $1,000 in 5 years.
Chris Smith at The Wine Investment Fund said wine becomes attractive when people are uncertain about the economy, so with governments pumping money all around the world, that should in theory lead to inflation. Smith expects the Liv-ex to rise 7.6 percent by year-end as the correction has been overdone.
Yannick Naud at Glendevon King said prices for Bordeaux wine up to 10 years old should retreat.
Read the full article at http://www.bloomberg.com/news/2013-05-29/gold-diverging-from-fine-wine-as-bullion-investors-lose-faith.html
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