In the previous article ‘Puerh Tea Investment Rolling The Dice‘ we discussed the ins and outs, the trials and tribulations of Puerh tea investment in China. In the article we looked at how investment could be a great vehicle for monetary gain but in this article we will be taking a closer look at how to invest in yourself and your Puerh tea drinking future.
Ever since I can remember pu Erh tea prices have been inflating around 20% per year every year. Who knows how long this will carry on for. There is always the potential for another 2007 bubble to burst. We are living in turbulent times. It’s not only the pandemic but also The fact that tea has been rising at a steady rate for so long there is always the chance that this slightly overheated market may burst again. All this on another blog look out for that one!
If you’re investing in yourself and you like fresh spring tea you’re pretty much screwed. There is no other way, you’ll just need to front up whatever the going rate of is for that years spring tea. if your like to drink your Pu a little older then this is the way I like to look at things… it’s 2020 now, if you bought a 200g 2015 cake of spring Da Shu raw Puerh tea for £40, in 2020 that cake (providing it we’re still to be available) would be subject to an average of 12% compound inflation for each year in storage. The percentage that it goes every year could even be higher depending on the availability of said tea. If the seller only has three cakes left he’s going to set the price even higher because he will not be able to get it back again. the Standard compound inflation for that £40 cake will mean it will cost £70.50 at the six year stage or 2021. You would be paying over 75% more for that cake not taking into account market force variables.
If you were to have bought that one cake, put it in your pumidor for five years and leave it there, You would save 75% compared to if you were to buy it from a shop that year. Bargain! But it gets better….If you were to invest in tongs (7 cake bundle) you would get the Western wholesale price on that tong compared to a purchase of an individual cake. This can vary of course but for ease we’ll say it’s 20%. now this tea cake costs you £30, even more savings!
Having your tea sit there, somewhere you can visit, touch and feel gives you enormous sense of satisfaction and really helps to feed the collectors bug we will have in us! It’s also really nice to be able to taste our tea over time and watch it grow. of course storage is vitally important. Please visit earlier blogs for the information on how to store your tea responsibly and to avoid any nasty surprises! It’s also very useful to either have knowledge on how a certain region of Tea will perform overtime or you’ll want to get advice on this because your tea will change and to have even a small idea on projecting its taste in the future will be great in helping you decide which teas to invest in. Lucky for you that guy is right here writing this blog right now! Please feel free to hit me up if and when you’re deciding to get going on your future for our tea drinking investment.
You can tong up on Puerh tea of any age really and I can’t see any reason why stored ageing tea will take a nose dive any time soon. Right now some good picks would be 2011 Dayi 7542 (price will rocket up next year), our 2007 CNNP 100g bricks or maybe our 2004 Chunhai Cha Chang Raw.
As always, thank you to everyone for taking the time to read this blog, happy cupping!