Friday, December 31st, 2010

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




China’s Novel Investment – Producing Dollars Investing in Pu-erh Tea  

Post by Varat Phong.





*This write-up was made available by Puerh Cha

While most Pu-erh tea lovers would never ever dream of selling their prized collections the escalating price of Pu-erh tea has attracted several investors and opportunists. In China’s supercharged economic climate, where no investment possibility goes unnoticed the thought of investing in tea is not just a novel notion but an increasingly well-liked trend followed by many affluent young specialists. For the much better component of a decade the price tag of Pu-erh tea has risen each 12 months, averaging a tough estimate of ten% yearly.

For premium manufacturing consisting of wild tea leaves or leaves from aged tea trees gathered from well-known regions these kinds of as Yiwu this markup is progressively larger with charges jumping between 30-80% in 2006 on your own. The aged tea sector has made the biggest gains of all. Rates for sure vintages have sky rocketed, some easily multiplying by as a lot as 10X occasions inside of the span of a handful of a long time. A obvious example is the price of the famous 1950s Red Label (Hong yin). One piece of this renowned teacake weighing about 357grams was when valued at US00 in 2003 but has now risen to practically US00 in 2006 at retail outlets in Hong Kong.

In summary the market growth for Pu-erh tea has been for the past decade exceptional. A repeat of this exceptional growth for the following decade will possible see collectors and traders sitting on a goldmine. As the primary market for Pu-erh tea is China, the sustainability and growth of the Pu-erh tea marketplace will largely coincide with the potential improvement and growth of the Chinese economy.

Even though the increasing demand and reputation points to a vibrant future, a note of caution, not all Pu-erh tea will enjoy in value. Significantly of the Pu-erh teas flooding the markets these days are fakes and lower high quality teas. It is unfortunate but the precedence for growing Pu-erh production has tremendously compromised the good quality of tea in latest years. Even though the manufacturing of Pu-erh tea continues to improve annually, the high quality has considerably dropped with outputs from both 2005 and 2006 currently being most disappointing. The knock on impact has been a sharp boost in the price tag of older vintages. The pursuit of Pu-erh tea is very best carried out with caution. Ignorance can be expensive to a naïve investor.

Note: Pricing info and opinions on market developments are based mostly on informal discussions with tea merchants at different trading places. The rates really should be taken as a rough estimate only and the accuracy could fluctuate accordingly. All investments are a danger.

*To read more on Pu-erh investment trends click on the hyperlink Pu-erh Tea Information or go to http://www.puerhcha.com/Back links/Hyperlinks_Puerh_Tea_Information.htm

About the Author

Varat Phong. is the founder of Puerh Cha and is a passionate collector of Pu-erh teas. Varat’s passion and really like for Pu-erh tea frequently takes him to China, Hong Kong and Taiwan in his continuous search for scarce and exclusive Pu-erh teas. For more details, content articles and illustrations on Pu-erh tea please pay a visit to the Puerh Cha site at http://www.puerhcha.com

 

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