Thorstein Bunde Veblen born July 30, 1857 – August 3, 1929 was a Norwegian-American sociologist and economist and a founder, along with John R. Commons, of the institutional economics movement.  Perhaps most famous for his view that the rich and poor alike attempt to impress others and seek to gain advantage through conspicuous consumption.

From this economic theory the concept of Veblen goods has arisen, which are a theoretical group of commodities for which peoples' preference for buying them increases as a direct function of their price, instead of decreasing according to the law of demand.
Many claim that some types of high-status goods, such as diamonds or luxury cars and of course fine wine are Veblen goods, and that decreasing their prices decreases people's preference for buying them because they are no longer perceived as exclusive or high status products. Moreover, a price increase may increase that high status and perception of exclusivity, thereby making the goods even more preferable.

This is worth strong consideration with the economic changes we have seen in the last 100 year, the class crossover both nationally and internationally have transformed with even more people than ever trying to establish a certain ‘status’ amongst their peers.  If we consider further that only 1% of the worlds wine production should be considered for investment.  This trend is set to continue; previously these wines were consumed by wealthy connoisseurs in France, Britain, and America where they were consumed by the rich and famous in restaurants, business and political meetings as well as filling wine cellars. 

Previously preserved for old Europe and America the low supply forced prices up making the investment strong and high profile.  Today with the introduction of the now mature markets in:  Singapore, Hong Kong, and other emerging markets (Brics) China, Brazil, and Russia; we find that the supply has been stretched more than ever and the supply pressure is set to continue. This is set against investment grade vintages, which decrease as they mature and are consumed.

Few would argue that over the next century these trends are set to diminish.  In fact, with traditional class structure subsiding the ‘riche’ may clamber harder than ever to drink the best and be perceived thus.