Another investment bubble may have popped. This time, it is something you can drink.

As with some other forms of investments, sellers have been touting the China demand and limited supply as the sure-win formula to great profits. However, wine prices have slumped recently. The Live-ex 100 index, which represents the price movement of 100 of the most sought after fine wines which have a strong secondary market, have fallen 22% from the peak in June 2011. Prices of Chateau Lafite 2008 have even been reported to have fallen by 45%.

“Some of the Chinese super-rich are getting tired of Lafite“, said George Tong, vice-president of his family’s toy company and a prominent Hong Kong wine collector, quoted The Sunday Times.

When someone is trying to sell you something, it is normal to find him or her emphasising only the good stuff and none of the bad stuff. ...