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Gold vs Wine: We Have A Winner

Tyler Durden's picture


One may not be able to eat gold, and one can certainly drink wine (in fact, in moderation it is encouraged by the surgeon general), yet when it comes to the age-old competition of which one makes a better wealth-preserving investment, we finally have a clear winner.


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Mon, 11/28/2011 - 11:44 | 1920976 GeneMarchbanks
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Cheers to that!

Mon, 11/28/2011 - 11:47 | 1920999 PaperBear
PaperBear's picture

I'll drink to that. Too obvious ?

Mon, 11/28/2011 - 11:48 | 1921003 gmrpeabody
gmrpeabody's picture

Going long aeration.

Mon, 11/28/2011 - 11:57 | 1921044 Schmuck Raker
Schmuck Raker's picture

Buy the *hic*

Mon, 11/28/2011 - 12:03 | 1921069 Turd Ferguson
Turd Ferguson's picture

I'd have no problem whatsoever switching to the "wine standard". In fact, I encourage it.

Mon, 11/28/2011 - 12:42 | 1921222 trav7777
trav7777's picture

you can eat gold, shit it out and still have it...sounds like win/win

Mon, 11/28/2011 - 12:54 | 1921282 Jack Napier
Jack Napier's picture

Big surprise, whining doesn't accomplish as much as stacking.

Mon, 11/28/2011 - 13:46 | 1921484 InconvenientCou...
InconvenientCounterParty's picture

Base wealth is more or less defined as the quantity of non-consumable units you can trade for consumables.

Wine in particular is fragile and depends on a number of counter parties. Handling and storage history are big, so the shit ends up like RMBS in a sense. The more the bottle changes hands, the more counter party liability you acquire. I doubt the ZH crowd would want any part of that circus.

If the consumable seems too complicated to formulate an index for, or it's a collectable item with notional value, don't bother.

I'm standing by for the definitive gold/hard liquor, gold/oil, gold/coffee, gold/wheat and gold/rent charts. Gold is money first and a spec. carry trade second. It is most certainly not a religion.


Mon, 11/28/2011 - 13:18 | 1921361 caconhma
caconhma's picture

Naturally, wine is a winner. You cannot drink gold.

Mon, 11/28/2011 - 15:42 | 1922149 monoloco
monoloco's picture

In a flight to quality i'm taking this as an opportunity to back the truck up on Chateau d'Yquem.

Mon, 11/28/2011 - 12:11 | 1921072 Pladizow
Pladizow's picture

Show me the Goldschlager vs. Resveratrol chart!


Mon, 11/28/2011 - 12:37 | 1921199 margaris
margaris's picture

remember to buy PHYSICAL wine,
if you cant spit it out, you dont own it!

Mon, 11/28/2011 - 12:14 | 1921109 Ahmeexnal
Ahmeexnal's picture

You should not drink wine.
Unless you want Bisphenol A to ruin you.

Mon, 11/28/2011 - 12:25 | 1921156 Uncle Remus
Uncle Remus's picture



Mon, 11/28/2011 - 12:32 | 1921181 Alfred E. Newman
Alfred E. Newman's picture


Mon, 11/28/2011 - 12:38 | 1921202 Matt
Matt's picture

Wine in a plastic bag is not fine wine.

Mon, 11/28/2011 - 13:11 | 1921348 Ghordius
Ghordius's picture

What does it take for you to make a positive comment?
"this blood on the street, not red enough..." ;-)

Mon, 11/28/2011 - 13:48 | 1921490 Ahmeexnal
Ahmeexnal's picture

What does it take for you to make a positive comment?

Maybe if I drank some Kool-Aid?

But I prefer drinking real fruit juice.

Mon, 11/28/2011 - 14:08 | 1921575 tarpuranus
tarpuranus's picture

Wine is REAL fruit juice..that's what I tell my wife

Mon, 11/28/2011 - 12:03 | 1921071 WhiteNight123129
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Guys there is a Processed Tobacco Index on BLoomberg which available over a long period of time 1947. You have to add farm productivity. It tracks slower inflation in the early 1990s very well as well as 2002-2003. Tobacco demand is very inelastic to price, it is not subsituable to any other soft commodity, only substituable to other very addictive substance maybe. Actually it was used in the XVII century as alternative currency in Virginia because of lack of Gold. That is a way to rebuke the bullshit about CPI-U hands down, that with the nowandthefutures index on utilities garbage collection, you have a pretty good way to debunk inflation BS. Of course if you live in the US and do your own shopping you know. The processed tobacco increase is extremely steady with lowest volatility of ANY soft commodity price (inelastic end demand and 0 substitution). Right it tells us we have 7-8% inflation.

Mon, 11/28/2011 - 12:05 | 1921078 WhiteNight123129
WhiteNight123129's picture

BTW up to 1971 the processed tobacco was kind rather stable, it explosed in sync after Nixon got out of Gold window.

Mon, 11/28/2011 - 12:06 | 1921080 Carlyle Groupie
Carlyle Groupie's picture

No coke charts? Bah humbug!

Mon, 11/28/2011 - 13:23 | 1921391 aldousd
aldousd's picture

nobody knows what the shelf life of cocaine is, much less that of it's value, because it has a very high velocity.

Mon, 11/28/2011 - 11:43 | 1920977 SelfGov
SelfGov's picture

It is finally profitable to turn on my wine-into-gold machine.

Mon, 11/28/2011 - 12:12 | 1921098 Boba Fiat
Boba Fiat's picture

You people are foolish.  It only costs $5 to dig wine out of the earth. 

Mon, 11/28/2011 - 12:36 | 1921190 Alfred E. Newman
Alfred E. Newman's picture

well try again 1.50/per 100# of grape

Mon, 11/28/2011 - 12:53 | 1921270 Jack Napier
Jack Napier's picture

$5 is supposedly how much it costs to mine an oz of silver. Both statements are equally ludicrous, but only one of them has the /sarc.

Mon, 11/28/2011 - 11:44 | 1920979 thunderchief
thunderchief's picture

South African Wines are the best.


Mon, 11/28/2011 - 11:45 | 1920991 GeneMarchbanks
GeneMarchbanks's picture

A Stellenbosch to you my friend!

Mon, 11/28/2011 - 11:48 | 1921007 Gandalf6900
Gandalf6900's picture

please come back to reality

Mon, 11/28/2011 - 11:58 | 1921048 Troy Ounce
Troy Ounce's picture


Mon, 11/28/2011 - 12:31 | 1921178 Alfred E. Newman
Alfred E. Newman's picture

In your dreams, TAKE THAT BACK.

The surprise of the decade is great wines from Arizona.

Mon, 11/28/2011 - 12:41 | 1921215 Tsunami Wave
Tsunami Wave's picture

In all honesty, some of the best wines you may ever taste come from the finger lakes in upstate New York.  It is that damn good.

Mon, 11/28/2011 - 12:41 | 1921217 Nobody For President
Nobody For President's picture

He he, you make the little joke, eh.

How about 'great wines from North Dakota'?

Oh, wait - you meant 'whines', right?

Mon, 11/28/2011 - 11:44 | 1920980 jomama
jomama's picture

wash that ingot down, bitchez.

Mon, 11/28/2011 - 11:44 | 1920987 The Axe
The Axe's picture

I am long single malt scotch and short Chinese internet stocks..

Mon, 11/28/2011 - 11:48 | 1921001 GeneMarchbanks
GeneMarchbanks's picture

Well played. Major divergence there indeed.

Mon, 11/28/2011 - 11:45 | 1920990 homer8043
homer8043's picture

Wine is recommended when following the markets and news. Or at least should be.

Mon, 11/28/2011 - 11:45 | 1920992 bernorange
bernorange's picture

In vino veritas

Mon, 11/28/2011 - 11:57 | 1921015 Smithovsky
Smithovsky's picture

Edere non potes aurum, canes.  

In vino opes.


Mon, 11/28/2011 - 11:45 | 1920993 No One
No One's picture

and both, when used properly, can get you fucked!

Mon, 11/28/2011 - 11:52 | 1921022 gmrpeabody
gmrpeabody's picture

In more ways than one..., if used improperly.

Mon, 11/28/2011 - 11:46 | 1920994 SilverIsKing
SilverIsKing's picture

It looks like they began lacing wines with Tungsten at the start of 2011.

Mon, 11/28/2011 - 11:46 | 1920996 dereksatkinson
dereksatkinson's picture

Is the news day really that slow?

Mon, 11/28/2011 - 11:55 | 1921036 GeneMarchbanks
GeneMarchbanks's picture

Let's see.

Bullshit ramp... check.

Europe fixed... check.

Magic pixie dust rumor-mill... running at full capacity.

Mon, 11/28/2011 - 11:48 | 1921006 Smithovsky
Smithovsky's picture

Keeping your wealth in wine is dangerous, especially if you have a party and the cheap stuff runs out.  

Gold wins not despite of being inedible but because of it.  

Mon, 11/28/2011 - 11:49 | 1921008 slaughterer
slaughterer's picture

The live-ex fine wine index, unlike gold, is basically driven by Hong Kong froth and Asian hot money.  It is an alternative way to short a Chinese hard landing.   

Mon, 11/28/2011 - 11:49 | 1921009 SHEEPFUKKER

It's so weird, the more wine I drink, the more times I hit the buy button on Apmex. 

Mon, 11/28/2011 - 12:15 | 1921110 slewie the pi-rat
slewie the pi-rat's picture

when they have a wine-tasting competition, what do they award to the best?

G0LD, not goldi!

Mon, 11/28/2011 - 12:36 | 1921187 NotApplicable
NotApplicable's picture

So, correlation does equal causation in this case?

Mon, 11/28/2011 - 11:49 | 1921010 columbia1
columbia1's picture

Also possible that Wine might be leading Gold and topped first?

Mon, 11/28/2011 - 12:35 | 1921189 NotApplicable
NotApplicable's picture

Because wine is more bubbly?

Mon, 11/28/2011 - 11:49 | 1921011 glokk26L
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Drawback of wine vs. gold, drop one standard increment of each on concrete floor.

While the shiney may, in all possibility, have gotten a ding, watching one attempt to use a sponge to reclaim their former "investment" would make somebody else cry.

Besides, after a certain point, if you have enough of the wine, the wife will probably have consumed it and replaced the contents with colored liquid hoping you don't notice.

Mon, 11/28/2011 - 12:04 | 1921073 machineh
machineh's picture

'replaced the contents with colored liquid'

Since tungsten concentrate is almost colorless, I had to add red food coloring to it.

Sorry for any inconvenience!

Mon, 11/28/2011 - 11:51 | 1921020 BandGap
BandGap's picture

Oxidation affects one far more than the other. 

Mon, 11/28/2011 - 11:52 | 1921023 Missing_Link
Missing_Link's picture

Pffft.  All this says is gold is in a bubble and wine is undervalued.  Go long wine!

Mon, 11/28/2011 - 11:52 | 1921025 Conrad Murray
Conrad Murray's picture

Thunderbird, bitches!

Mon, 11/28/2011 - 12:27 | 1921167 weinerdog43
weinerdog43's picture

Mogen David Plum 20/20 or perhaps a nice Night Train.  Of course, you have to lift your pinkie whilst sipping.

Mon, 11/28/2011 - 12:51 | 1921265 IrritableBowels
IrritableBowels's picture

Good thing you had the 20/20 there.  Never knew what the MD in Mad Dog stood for.  NASTY SHIT.

Mon, 11/28/2011 - 11:54 | 1921026 Antifederalist
Antifederalist's picture

Thread drift.

Has anyone seen this!  Holy shit, this is VERY BAD.

S. 1867  National Defense Authorization Bill.

"This means Americans could be declared domestic terrorists and thrown in a military brig with no recourse whatsoever. Given that the Department of Homeland Security has characterized behavior such as buying gold, owning guns, using a watch or binoculars, donating to charity, using the telephone or email to find information, using cash, and all manner of mundane behaviors as potential indicators of domestic terrorism, such a provision would be wide open to abuse."

Sounds like Zero Hedgers would fall into this broad definition.

Mon, 11/28/2011 - 12:12 | 1921085 Conrad Murray
Conrad Murray's picture

Two choices:

1. Leave the country while you still can. Is it really worth fretting over the fate of a bunch of slaves?

2. Sharpen your knives, oil your guns, and start drilling with your family, friends, and neighbors.

The governenment knows the end is near for the current financial, and thus societal, system. Those in charge will fight very hard, very violently, to be in a position to regain dominance once the smoke clears.

sic semper tyrannis

Mon, 11/28/2011 - 12:41 | 1921218 NotApplicable
NotApplicable's picture

So, this is how they'll keep Dr. Paul from office. Of course, there's nothing new about extra-legal actions like these in a "time of war."

Luckily, (for them) we live in a state of perpetual war.

On a personal note, I once used my anniversary gift at work to get a pair of binoculars. Hopefully the leaf-blower I chose last time is not considered a WMD.

Mon, 11/28/2011 - 11:53 | 1921027 vato poco
vato poco's picture

Wine gives me headaches. Gold, OTOH, soothes my troubled heart and helps me sleep better.

Mon, 11/28/2011 - 11:54 | 1921032 Wakanda
Wakanda's picture

Please pass the ignot.

Mon, 11/28/2011 - 11:59 | 1921053 Think for yourself
Think for yourself's picture

I'm sorry, I didn't understand you. Pass the ingot or the spigot?

Mon, 11/28/2011 - 12:08 | 1921086 Wakanda
Wakanda's picture


Mon, 11/28/2011 - 11:55 | 1921033 The Axe
The Axe's picture

HOLY fucking melt-iup in PSLV     I got a sale off at 16.23    of course it will be broken

Mon, 11/28/2011 - 12:01 | 1921060 Quinvarius
Quinvarius's picture

Sprott said he would not do an offering that would damage the premium, even though he just did a filing to buy and do a PSLV offering silver big enough to clean out the COMEX registered supply.  It is picking its premium back up.

Mon, 11/28/2011 - 11:55 | 1921038 Gunther
Gunther's picture

Albeit gold is solid it is more liquid then wine, at least trading-wise.

Mon, 11/28/2011 - 11:57 | 1921041 Bahamas
Bahamas's picture

Rothschild also in the wine business...and with some big numbers too!!!  200 + thousand $ a bottle,9171,2056733,00.html#ixzz1dryBpj4n


Mon, 11/28/2011 - 11:57 | 1921043 slaughterer
slaughterer's picture

1.)  Develop a close relationship with a Bordeaux negociant with access to the 1st Growths

2.) Buy Petrus, Lafite, YQuem et. al. as futures the first 5 minutes they are released "en primeur" (sort of like an IPO) on Place de Bordeaux.  

3.)  Upon release sell all of your cases to a Hong Kong merchant.  


Mon, 11/28/2011 - 11:58 | 1921049 stop.snitching
stop.snitching's picture

An unrelated question...did anyone notice the ~5 minute drop in VIX around 10:20? What was it? It fell all the way down to 29.48!! And then right back all the way up to 32....

Mon, 11/28/2011 - 11:59 | 1921055 NorthPole
NorthPole's picture

Good wine, drank in moderation, is not harmful even in greatest quantities.

Mon, 11/28/2011 - 12:43 | 1921225 NotApplicable
NotApplicable's picture

So, you're recommending staying drunk all of the time?

Mon, 11/28/2011 - 12:01 | 1921062 Seer
Seer's picture

Whoa!  Look at those champagne years, 2006 through 2008.  Max bubbling!

Mon, 11/28/2011 - 12:02 | 1921064 Instant Wealth
Instant Wealth's picture

Fine wine vs. Coca Cola would make a nice chart.

Mon, 11/28/2011 - 12:03 | 1921070 TahoBilly
TahoBilly's picture

"Bloodstains, speed kills, fast cars, cheap thrills, rich girls, fine wine, I lost my sense, I lost control, I lost my mind"

Mon, 11/28/2011 - 12:04 | 1921075 digalert
digalert's picture

Dump the ignot, buy the ingot.

Mon, 11/28/2011 - 12:06 | 1921079 Robsabi
Robsabi's picture

While I certainly personally choose gold over wine, based on your own chart, in 2007 you could have just as easily declared a clear winner -- in favour of wine. The only relevant thing about this posting is that it shows what an absurd world we live in, where a perishable can, for great lengths of time, keep up in value with the ultimate in non-perishables.

Mon, 11/28/2011 - 12:07 | 1921082 mktsrmanipulated
mktsrmanipulated's picture

i know this thread is on wine v gold but heres a ?.....if everything in Europe seems better---the irrational ES rally 3.42% then why is the EURO only up .79%? enough said

Mon, 11/28/2011 - 12:11 | 1921093 slaughterer
slaughterer's picture

ES broke its correlation with EUR/USD a few sessions ago.  

Mon, 11/28/2011 - 12:13 | 1921101 SHEEPFUKKER

Like any of the data makes sense anymore.  But point well taken. 

Mon, 11/28/2011 - 12:27 | 1921169 mayhem_korner
mayhem_korner's picture

the irrational ES rally 3.42% then why is the EURO only up .79%?


The day isn't over yet for ES...

Mon, 11/28/2011 - 12:11 | 1921095 Burgess Shale
Burgess Shale's picture

Gold bugs have always been big whiners.

Mon, 11/28/2011 - 12:13 | 1921106 SHEEPFUKKER

funny, but junking you. 

Mon, 11/28/2011 - 12:14 | 1921108 Occams Aftershave
Occams Aftershave's picture

did they include storage cost of each, and spoilage?   Gold doesn't turn to vinegar.

Mon, 11/28/2011 - 12:19 | 1921124 Seer
Seer's picture

Vinegar is a pretty useful substance, perhaps even more so than wine.  But. seems like an expensive way to get there...

Mon, 11/28/2011 - 12:16 | 1921113 chaartist
chaartist's picture

I m drunk under the picture of god lying on my gold.

Mon, 11/28/2011 - 12:20 | 1921115 Smithovsky
Smithovsky's picture

Gold... shiny.

Wine... not shiny.

Case closed.  

Mon, 11/28/2011 - 12:17 | 1921116 fonzanoon
fonzanoon's picture

Citi upgraded Genworth to buy and shit upgraded poop to feces.

Mon, 11/28/2011 - 12:20 | 1921129 loftgroovv
loftgroovv's picture

Black Friday sales were a record.


Main Street is spending again, the domestic recovery is clearly on its way.


The economic woes of the US appear to be over. 

Mon, 11/28/2011 - 12:21 | 1921135 Troy Ounce
Troy Ounce's picture



The Surgeon General should change the warning as:


"women should not drink alcohol because of the risk of pregancy"

Mon, 11/28/2011 - 12:23 | 1921143 CitizenPete
CitizenPete's picture

I have a pretty big wine collection I need to sell privately.  Anybody know where (web site, etc.) I can do that or privately post an inventory?  Proceeds will go to mortgage payments and yellow metal.

Mon, 11/28/2011 - 12:23 | 1921144 electricgorilla
electricgorilla's picture

How about wine in a gold bottle?

Mon, 11/28/2011 - 12:48 | 1921254 Nobody For President
Nobody For President's picture

No, no - that's backwards...

Mon, 11/28/2011 - 12:46 | 1921244 glokk26L
glokk26L's picture

I'm betting that a good deal of gold has outlasted melts of dozens of occasions and nations, while wine will eventually turn into vinegar and after a longer occasion, probably into an empty broken pile of glass shards.

Mon, 11/28/2011 - 12:55 | 1921287 Downtoolong
Downtoolong's picture

My problem with wine as an investment is that I CAN drink it, which makes it more like Greek Bonds from a Return Of Capital perspective.

Mon, 11/28/2011 - 13:00 | 1921296 PulauHantu29
PulauHantu29's picture

How do you sell wine? You need a liquor license, and finding a buyer can be difficult. My friend had to give away his wine...he never found a buyer for his "investment."

Mon, 11/28/2011 - 13:19 | 1921375 Coronal Mass Ej...
Coronal Mass Ejaculation's picture

You can buy/sell bordeaux and have it stored in a separate cellar where they will keep it for you, until such time in the future that you wish to take delivery, or sell at a higher price....

Mon, 11/28/2011 - 13:36 | 1921445 CitizenPete
CitizenPete's picture

Yeah.  I'm sitting on quite an investment from a buddy of mine who left country.  The "investment" is now in my basement and he wants me to "move it" for him. 

Mon, 11/28/2011 - 13:18 | 1921370 Coronal Mass Ej...
Coronal Mass Ejaculation's picture

LOL...and it looks like wine was a "clear winner" late 2006/early 2007 :)

Mon, 11/28/2011 - 13:34 | 1921436 scratch_en_sniff
scratch_en_sniff's picture

The difference is in the diversification potential of a wine collection. You cant diversify a hoard of gold, its all the same price ounce for ounce, and if it gets choked one day, you pay the full price…and if it should be re-valued buy a demented government, well that’s another story, but I cant see them ever devaluing wine somehow. And you cant buy gold for 5% of its price anymore, whereas you could buy a relatively cheep crate of plonk only for the high priests of wine(who come and go) to decide 10 years later that it was an “exceptional year“(that tends to happen now and again). If you drink it, and really like it, take a punt…that’s if you can sit with your hands in your pockets with booze in the house. Thats the good thing about gold, you cant drink it.

Mon, 11/28/2011 - 13:40 | 1921463 pacu44
pacu44's picture

Gold > Wine bitchez

Mon, 11/28/2011 - 13:40 | 1921464 pacu44
pacu44's picture

Gold > Wine bitchez

Mon, 11/28/2011 - 13:41 | 1921466 pacu44
pacu44's picture

Gold > Wine bitchez

Mon, 11/28/2011 - 14:21 | 1921612 Youri Carma
Youri Carma's picture

btw Speakin about wine … I had myself a godamn good Grenache, Syrah Carignan red wine yesterday. Very fruity like raspberry yet crispy.

And insanely cheap indeedy. Only costed me €4,- for a full Liter (0.26 Gallon) of 12.5% quality Grenache, Syrah Carignan red wine.


Mon, 11/28/2011 - 14:29 | 1921637 falak pema
falak pema's picture

Quintilus is a wine made in Fitou region, in France.  I reccomend it;light and very agreable as grenache and syrah, carignan are good combos. Around same price.

Mon, 11/28/2011 - 14:33 | 1921648 falak pema
falak pema's picture

Wine for placement terms : buy best champagnes and burgundy; not bordeaux except a few exceptions.

Mon, 11/28/2011 - 15:00 | 1921770 Georgesblog
Georgesblog's picture

They haven't figured out how to bail out countries, without increasing the debt load. Could iy be that the banks are conquering nations with a stroke of a pen?

Mon, 11/28/2011 - 16:22 | 1922453 honestann
honestann's picture

In gold we trust.

Mon, 11/28/2011 - 16:27 | 1922461 bgilliam83
bgilliam83's picture

wow this is grasping at straws don't you think tyler?  I might be a dumbass but 1 oz of gold could prepare you for war, famine, plague etc.  If you have all that and money to burn buy a tank not this bull crap lol

Mon, 11/28/2011 - 18:04 | 1923025 mkkby
mkkby's picture

Based on the historical dow to wine ratio, I'd say champagne is in a bubble.

Mon, 11/28/2011 - 18:12 | 1923050 SILVERGEDDON

I am long in pussy - up, down, side to side movement, doesn't matter. Still rides the market just fine. Wine is just leverage for the investment in pussy. Gold is for long term holding on to pussy, and other commodities worth while having. Get your priorities straight, people !!!!

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