Pu'er Cha asset

            When one think of alternative investments, there is a host of conventional assets that come to mind: art, watches, jewellery and even cameras. But did you know that Pu'er Cha (an antique that can brew and drink) too are a valid investment alternative? When it comes to Pu'er Cha buyers, there are three catergories: those who buy for their own personal collection and those buying for investment purposes. Those who view Pu'er Cha as an investment tool do so for various reasons and it is reportedly gaining traction.
             
           

          INVESTMENT POTENTIAL

           Investment in fine antique Pu'er teas is a thriving business that rakes in an estimated billion anually on a global scale. Those that venture into this investment alternative do so because profits are easily realised and above all else, tax-free. This investment is generally viewed as a stable option as demand is proven to be generally consistent and recession-resillent. But this market, traditionally the preserve of China, Taiwan, Hong Kong is set to grow, boosted by strong interest from investors around the globe.

            

            INVESTMENT PROCESS

            The history of Pu"er tea trading started long before Pu'er tea investment came into being. In fact,established name of Pu'er from Yunnan of China have been trading for over 300 years. Demand for fine Pu'er has been growing steadily around the world, as savvy investors have begun to see the opportunities brought about by the growing demand and limited supply.

             So how does an investor gain access to this fine world of vintage Pu'er tea investment?

             One would need to source for a fine Pu'er tea investment specialist in the market, many of whom are based in Hong Kong. These firms recommend fine Pu'er tea with the best potential returns, based on their knowledge of taxation and market conditions. plus they manage the storage of the investments ( a crucial dimension to this investment) and customise the investors' investment portfolios to suit their personal taste.

             These specialists also offers structured investments to Pu'er tea connoisseurs but for those with little or no knowledge of Pu'er tea, fret not as many of these specialist firms also provides consultation and advice on this alternative investment model.

              

                PATIENCE PLEASE

                Before committing oneself to an investment in fine Pu'er tea, a potential client must first decide on the time horizon for their investments.

                          "Pu'er tea investing is not for someone with a day trader mentally". On average, investment-grade Pu'er tea needs to be held for a minimum of ten years before being sold. The rationale is based on the simple demand-and-supply equation. the longer Pu'er tea is held, the more its value increases as supply dwindles with consumption over time, so those left holding the remaining fewer pieces over time will naturally command a premium. Patience therefore holds the key. " This is for someone who wants to preserve wealth and see their wealth increase in the long run,"

                POTENTIAL GAINS

                Of course, the big question on an investors's mind is the potential returns one can expect from investing in vintage Pu'er tea. Like all investments, however, it is almost impossible to promise a guranteed rate of return. But investing in Pu'er tea, like any other investment vehicle also involves risks and should only be seen as one of a number of strands in an investment portfolio. Like any other investment vehicles, investment in fine Pu'er is tied to the wider economy and thus to the vagaries of market forces and in this case in particular, to the rate of economic growth in emerging markets like China, Singapore, Indonesia , Malaysia , where demand for fine Pu'er tea has elevated its value.

                 

              YUNNAN FIRST

              For the uninitiated, it is an accepted fact that the best Pu'er tea for investment purposes almost always originate from the Yunnan region of Southern China.

              Reportedly the rate of return, especially for investment Pu'er tea from Yunnan region, can typically attain heights of between 12 to 20 percent per annum over the last 2 years.

              Why are Yunnan Vintage Pu'er tea so valued? Its climate and geography makes it ideal for Pu'er tea's tree growing. Additionally, its annual Pu'er tea production is tightly regulated to ensure that, while the region's finest Pu'er tea are easily available, the same rules effectively impose a cap on supply. This thus ensures that quality and demand will always remain stable.