Today’s cover of the NY Daily News:
So this raises the question of whether an increase in the number of intoxicating substances that are legal compels, applying the law of supply and demand, a decrease in the price of intoxicating substance in general. If legal intoxicants are more easily available, and therefore the supply curve moves to the right and the demand curve remains constant (Yes, I know the demand curve will also move to the right, but I suspect not nearly as far), does that not mean that price goes down, which adversely affects the value of wine I have in my cellar.
Just something to think about.
Don’t most of the wines you like go really well with Doritos?
Might decrease the value of your mourvedre bottles
I can see those SQN bottles gaining value as empties if they can find a way to easily add a carburetor hole.
The value of premium wine doesn’t lie in its intoxicating value. You can get drunk exactly the same off Two Buck Chuck or box wine.
Marijuana and other drugs are all about the intoxicating effects. You’d happily drink a DRC if it tasted the same but didn’t make you buzzed. But nobody ever (knowingly) smoked pot or snorted coke that had zero intoxicating effect just because of the great flavor. It’s really not the same thing, and so there should be no effect.
It’s possible pot and other drugs compete a little with cheap wine.
No. Both are legal here and OR wine is as expensive as ever, my cellar is larger than ever, and one can get 30% THC weed for $4 a gram. It’s a great time to be alive. I’m pretty sure nobody that buys pricy wine will stop because they can get weed. I sure haven’t.
one could argue that the substantial legal wealth which legal weed creates will increase wine’s value.
Seems like the perfect spot to insert the holier than thou statement of “who cares, I buy wine for enjoyment not investment”
But I would bet the price would be a lot less. The issue is not direct substitution, but movement along the entire chain of supply. If marijuana substitutes for TBC, then TBC may have to become 1.5 BC, and that would cause the price of Apothic to drop to keep market share, which would affect the price of Rhombauer, which would affect the price of . . . etc.
I guess I need to post a photo of my empty SQN bottle collection.
I suggest hedging with potato chip futures.
Or if vineyard land is converted to marijuana that might decrease the supply of some of the wines you own thereby increasing its value. Either effect seems equally likely
I’ve got a diamond drill, send them to me.
I don’t see why it would. The value of the alcohol / buzz from a bottle of wine is worth a few bucks at the most. It might also be a plus to be able to savor a bottle of DRC without getting intoxicated and without having to spit.
[This is in a hypothetical situation where everything else about the wine is 100% identical and everyone fully knows that.]
Ugh- you actually drink that spoofilated syrup? I think that stuff was just for investment!
As a hedge, you could corner the market in Funyuns.
Thanks for posting this. It reminds me so much of the ‘boom and bust’ cycles that have existed in the wine biz for quite some time.
It seems that a real ‘challenge’ will be to increase overall demand for these products - and my guess is that the next step will be an increase in marketing budgets via Facebook ads (if allowed) and elsewhere, showing ‘lifestyle’ type ads encouraging all to take part.
This will be interesting to follow - and will be interesting to see if parallels exist in CA as more and more dispensaries are created and more supply is put on line. The big difference - the overall population in CA vs OR.
$4 a gram? What is that, DRC? When I was a boy, it was $25 a quarter pound; $45 a half pound and $75 a pound.
PS - My mother used to snow shoe to school in Winnipeg, but it wasn’t up hill both ways.
Rising tides raise all boats. Buy real estate as your hedge. Here in Colorado almost everything has increased in value/price from the pot boom. Real estate especially went to the moon. All the 2nd and 3rd rate store fronts were bought up. Crappy warehouses empty for years suddenly became grow operations. All the support services for the industry also grew and opened more locations.