China’s Novel Investment – Making Money by Investing in Pu-erh Tea »
By webmaster on Mar 16, 2012 in China | 0 Comments
While most Pu-erh tea lovers would never dream of selling their prized collections the escalating price of Pu-erh tea has attracted many investors and opportunists. In China’s supercharged economy, where no investment opportunity goes unnoticed the idea of investing in tea is not just a novel idea but an increasingly popular trend followed by many affluent young professionals. For the better part of a decade the price of Pu-erh tea has risen each year, averaging a rough estimate of 10% annually.
For premium production consisting of wild tea leaves or leaves from old tea trees gathered from famous regions such as Yiwu this markup is progressively higher with prices jumping between 30-80% in 2006 alone. The aged tea sector has produced the biggest gains of all. Prices for certain vintages have sky rocketed, some easily multiplying by as much as 10X times within the span of a few years. A noticeable example is the price of the famous 1950s Red Label (Hong yin). One piece of this famous teacake weighing approximately 357grams was once valued at US00 in 2003 but has now risen to almost US00 in 2006 at retail outlets in Hong Kong.
