The Internet has yanked the cork out of wine as an investment class, reports the web site, www.marketwatch.com. Trading volumes are bubbly and some index values were up by 40% to 45% in the past year or so.

Web-based trading platforms mean investors can buy and sell wine anonymously with much the same ease as other investment assets. The Internet has also made research into pricing and availability easier for would-be investors.

"More people are investing in wine. It's not such a niche, closed market like it used to be," said Anthony Maxwell at The London International Vintners Exchange, an electronic trading platform for fine wine, which was launched in July 2000.

In the first six months of this year, the exchange has already matched more trades than it matched in the whole of last year. Last year, the value of wine traded on the exchange amounted to more than US$18 million.

Wine investors hope for capital appreciation over the lifespan of a fine wine, which can exceed 50 years. Affordability is also compelling: fine wines cost much less when they are young.

The London International Vintners Exchange also operates the Liv-Ex 100 index, which tracks the prices of 100 wines. In the past 18 months, the index has risen in value by between 40% and 45%, according to Maxwell.

Some of that value rise is the result of new investors coming into the sector from Russia and China, which, when coupled with limited availability, has helped to drive prices higher.

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