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

While most of the Pu-erh tea lovers never sell their most valuable collections of the escalating price of the dream Pu-erh tea has attracted many investors and opportunists. In China's supercharged economy, in which no investment opportunity go unnoticed, the idea of investing in tea is not only followed a new idea, but an increasingly popular trend for many affluent young professionals. Increased for most of a decade, the price of Pu-erh tea is every year, on average, a rough estimate of10% annually.

For production of premium collected from wild tea leaves or tea leaves of old trees from famous regions such as Yiwu this markup increasingly higher prices with a change between 30-80% alone in 2006. The old tea sector has the greatest gains of all produced. The prices of some vintages have scored the sky, some easy multiplication by as much as 10X times within the span of a few years ago. A striking example is the price of the famous 1950 Red Label (Hong Yin). OneWas famous piece of this so-called teacakes weighing 357grams of about once a value of U.S. $ 1200 in 2003 but has now risen to almost U.S. $ 5000 in 2006 in the retail sector in Hong Kong.

To sum up, the market growth for Pu-erh tea has in the past ten years has been excellent. A repetition of this exceptional growth over the next decade will likely see collectors and investors are sitting on a goldmine. Since the main market for the Pu-erh tea is China, the sustainability and growth of the Pu-erh tea market is essentiallytogether with the future development and growth of the Chinese economy.

While the increasing demand and popularity has a bright future, "Beware, not all Pu-erh tea will appreciate in value. A large part of the Pu-erh tea flooding the market today are counterfeit and low quality teas. It is unfortunate, but the priority for the increase in Pu-erh production is greatly impaired the quality of tea in recent years. While increasing the production of Pu-erh tea can also continue to report annually to theQuality is falling substantially between 2005 and 2006, with benefits was left very disappointing. The knock on effect has been a sharp rise in prices for older vintages. The pursuit of Pu-erh tea is best done with caution. Ignorance can be costly to a naive investor.

Note: Rates are based information and opinions on market trends in informal talks with retailers in various tea trade sites. The prices are as rough estimates only and the accuracy can vary canaccordingly. All investments are a risk.

* To read more, Pu-erh investment trends, click on the link Pu-erh Tea News, or visit www.puerhcha.com / links / Links_Puerh_Tea_News.htm