At a recent auction, a collector bought a case of Moutai for 1.3 million yuan or roughly 200 thousand US dollars. Although the bottles were produced in 1985, the same amount of money can buy you a small apartment in Beijing or a BMW 7 Series sedan. Why does everyone want it so badly? What causes the seemingly irrational Moutai fever?
Kweichou Moutai is China´s best-known liquor. At the end of last year, a bottle of 1958 Moutai fetched a record price of 1.45 million yuan at auction. And the craze continues. Bidders at a Monday auction drove up a case of 1985 Moutai to over a million yuan.
The price of China´s national banquet liquor, Moutai, has surged by as much as 10 to 20 percent over the last year. Analysts say there is a wide price gap between its retail and factory prices. Where at the factories, a bottle costs about 600 yuan, the same bottle can cost more than 1400 yuan at a liquor store.
The discrepancy between the domestic price of China´s prestigious liquor, Moutai, and its retail cost in the United States is causing a quite stir.
Guizhou Province is the birthplace of many famous baijiou brands. Liquor manufacturers there were snapping up sorghum, the raw material used for making the wine, due to soaring prices last year. So the sorghum price hike is believed to be the cause of the Moutai price hike.
"I believe this is not the cause of the Moutai price hike. The demand-and-supply contradiction might be causing the hike." Many consumers are collecting Moutai. In some places, Moutai liquor has even become a legitimate form of investment.
Maotai is more than just liquor. It takes no more than three years for its price to increase by 1000 yuan. This is seen by many people as a way to weather high inflation, just like the housing market. Do you think it is feasible to store Maotai as investment asset?
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