The Rise of Primitive Currencies
Early october, gold hit yet another all-time high – $4,000 per ounce. It’s a headline we’ve seen repeatedly in 2025, as both institutions and individuals increase their exposure to the precious metal. Economic and geopolitical instability continue to boost gold’s safe-haven appeal. Expectations of U.S. Federal Reserve rate cuts make non-yielding assets more attractive, while a weaker dollar lowers costs for foreign buyers. Sustained central bank purchases add structural support. At 1275, we need no convincing of the value of real, anti-fragile assets. In fact, we see gold’s relentless rise as a signal of something deeper: the return to primitive currencies.
The Decline of Fiat
Public confidence in fiat-based financial systems is waning. With expansionary monetary policies and record public debt, a shift away from fiat seems not only plausible, but inevitable. In contrast, real assets preserve purchasing power, acting as a safeguard against unlimited money creation. While the fine wine world has leaned into luxury branding in recent years, we believe its most exceptional bottles share more with gold than with handbags or watches. Their defining traits – genuine rarity, intrinsic value, and long-term stability – make them more than just indulgences. They are stores of value.
Chasing Gold’s Tail
Gold has surged since 2022 (see figure below), driven by inflation and global tensions. Fine wine, meanwhile, has lagged, correcting after its pandemic-era boom. But signs of a turnaround are emerging: the Liv-ex 50 (Bordeaux First Growths Index) posted its first monthly gain in September after nearly three years of declines. Historically, fine wine reacts to macroeconomic shifts with a 6–12 month delay compared to regulated assets. So, while we don’t expect an overnight rebound, the trajectory afoot is worth watching for further developments.
Liquid Gold
In the meantime, turbulence in the fine wine market is exactly what makes it compelling today. For those willing to look beyond traditional assets, the entry point into this scarce and magical asset has never been more attractive. Gold has already reasserted its value, fine wine may be next. We ask only that budding wine collectors take note of the key differences between Gold Bars, and Liquid Gold; not all fine wines are created equal. Selecting the right bottles and verifying provenance is the equivalent of buying LBMA Good Delivery-certified bullion – simply essential for long-term value.