Monday, November 3, 2008

China's Novel Investment – Making Money by Investing in Pu-erh Tea

For the better part of a decade the price of Pu-erh tea has risen each year, averaging a rough estimate of 10% annually. 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 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. 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.
One piece of this famous teacake weighing approximately 357grams was once valued at US$1200 in 2003 but has now risen to almost US$5000 in 2006 at retail outlets in Hong Kong. A noticeable example is the price of the famous 1950s Red Label (Hong yin). Prices for certain vintages have sky rocketed, some easily multiplying by as much as 10X times within the span of a few years. The aged tea sector has produced the biggest gains of all.

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.
In summary the market growth for Pu-erh tea is China, the sustainability and growth of the Pu-erh tea market will largely coincide with the future development and growth of the Pu-erh tea market will largely coincide with the future development and growth of the Pu-erh tea market will largely coincide with the future development and growth of the Pu-erh tea market will largely coincide with the future development and growth of the Pu-erh tea market will largely coincide with the future development and growth of the Pu-erh tea market will largely coincide with the future development and growth of the Chinese economy.
The knock on The pursuit of Pu-erh tea continues to increase annually, the quality has substantially dropped with outputs from both 2005 and 2006 being most disappointing. The knock on effect has been a sharp increase in the price of older vintages. The pursuit of Pu-erh tea continues to increase annually, the quality has substantially dropped with outputs from both 2005 and 2006 being most disappointing.

The knock on effect has been a sharp increase in the price of older vintages. The pursuit of Pu-erh tea continues to increase annually, the quality has substantially dropped with outputs from both 2005 and 2006 being most disappointing. The knock on effect has been a sharp increase in the price of older vintages. While the production of Pu-erh tea continues to increase annually, the quality has substantially dropped with outputs from both 2005 and 2006 being most disappointing. It is unfortunate but the precedence for increasing Pu-erh production has greatly compromised the quality of tea in recent years.

Much of the Pu-erh teas flooding the markets today are fakes and low quality teas. While the increasing demand and popularity points to a bright future, a note of caution, not all Pu-erh tea will appreciate in value.
All investments are a risk. The prices should be taken as a rough estimate only and the accuracy may vary accordingly. Note: Pricing information and opinions on market trends are based on informal discussions with tea merchants at various trading locations.
*To read more on Pu-erh investment trends click on the link
Pu-erh Tea News
or go to
www.puerhcha.com/Links/Links_Puerh_Tea_News.htm
For more information, articles and illustrations on Pu-erh tea please visit the Puerh Cha website at Varat's passion and love for Pu-erh tea frequently takes him to China, Hong Kong and Taiwan in his continuous search for rare and unique Pu-erh teas. is the founder of Puerh Cha and is a passionate collector of Pu-erh teas. Varat Phong.
www.puerhcha.com

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