Tariffs and Cork

Published on
June 7th, 2018
27 minutes

Tariffs and Cork

The Knock-On Effect ·
Featuring Alex Rosenberg, Justine Underhill, Roger Hirst and Jake Merl

Published on: June 7th, 2018 • Duration: 27 minutes

Why will U.S. tariffs lead to a resurgence for the global cork industry? Alex, Justine and Roger discuss. Plus, Jake makes the case for young people to own gold. Filmed on June 4, 2018.


  • JF
    Jennifer F.
    6 July 2018 @ 07:23
    We produce some absolutely great quality red wine. We have so much more depth of flavour than anything produce from the Napa Valley. And yes the screw top does not breathe. But that is why we decant and let it breathe. Also many are now, sealing the bottles with nitrogen. So nifty in protecting the wine as well.
  • CN
    Charles N.
    13 June 2018 @ 23:29
    I listened to the podcast version of this episode, and came here to leave a comment, where I was surprised to find the "10 Reasons" segment. I think it deserves inclusion in the podcast format in the future, even though the graphs won't translate to the audio-only format. I understand the A/B testing aspect of having different content across the 2 formats, but I think they should be in sync in the future once you're happy with the structure of the show so people don't have to listen to both versions. Thank you for continuing to experiment - I think this episode is an improvement on the first one. That said, this show would be more valuable to me if it incorporated more of what made AiF great: nuggets of wisdom from market participants with years of experience and skin in the game. I'll check back in a few more episodes.
  • Tv
    Timo v.
    10 June 2018 @ 08:11
    One more reason for using cork, which Alex didn't mention, is that especially for wines that have aging potential...the screw top doesn't breath as natural cork does. This has a significant effect on the aging/maturing of finer wines.
    • AR
      Alex R. | Real Vision
      12 June 2018 @ 12:43
      That's certainly a potential reason for preferring corks. However, while the popular perception is that a very slow rate of outside oxygen contact leads to the aging of wines, my understanding is that the science is still out on this. Also, screw caps have been improving, such that vintners can choose the specific oxygen transfer rate they desire; this could take some of the guesswork out of aging, assuming that what we think of as aging is essentially an oxidation process.
  • RD
    Ryan D.
    7 June 2018 @ 17:49
    Waaaay Better Episode! Being in the wine business, had a hunch where it was going and I hope that high quality cork makes a comeback as it is a time intensive business. Quality cork trees can take up to 50 years for the first harvest. Restaurant Wine Tip: When poured a "taste' at a Restaurant, just smell for anything funky, don't taste. It's way classier. Good job. Justine and Alex!
    • AR
      Alex R. | Real Vision
      8 June 2018 @ 17:30
      Ooh, like that tip -- going to start just sniffing. Thanks!
  • ST
    Simon T.
    8 June 2018 @ 11:43
    The Gold part was an interesting summary for beginners, Crystal clear Talking about corks and wine is most welcome but a little bit amateurish when Justine said “oh - Australia is producing wine?” Unfortunately didn’t learn anything during these 30 minutes
  • PB
    Pieter B.
    7 June 2018 @ 11:23
    This is awesome! Really fun and informative! Great series, thank you!
    • WS
      William S.
      7 June 2018 @ 22:07
      For the younger generation I prefer silver, higher upside and growth potential. Good episode. I liked learning about the cork industry.
  • DS
    Dan S.
    7 June 2018 @ 21:04
    This was enjoyable. Good work RV
  • IH
    Iain H.
    7 June 2018 @ 21:00
    Much better than the first show. keep up the good work.
  • JW
    Joel W.
    7 June 2018 @ 20:42
    Much improved; good episode.
  • WS
    William S.
    7 June 2018 @ 20:11
    Getting better, good gold segment regardless of demographic. A little goofy at times but improving.
  • TJ
    Terry J.
    7 June 2018 @ 19:18
    Brilliant! Loved it, and as several other viewers have already commented the content is getting better each week! Great pitch from Jake to fellow millennials to consider gold, if only as a diversification play. Well done Milton.
  • AM
    Alonso M.
    7 June 2018 @ 17:10
    This is a massive improvement in terms of the balance between humour and information. I learned something about wine corks. There was a comment about how if one can stomach the volatility in equities, they'd be better off just riding equities higher. I think the problem here is most people are happy to believe they can stomach the volatility in equities. But when the shit hits the fan, most of the most will realize the truth about their tolerance for volatility and will end up doing a capitulation puke session. This is actually very normal human behaviour, which is mainly why there is such high volatility in equities in the first place. For instance, investors put a higher multiple on earnings as the earnings cycle peaks, and a lower multiple on earnings as the cycle troughs. Perhaps an even bigger problem is that any sort of capitulation puke session in ugly bear markets leaves investors with semi-permanent psychological scars that keeps their allocation to equities below what it might otherwise be.
  • WS
    William S.
    7 June 2018 @ 15:27
    The assumption made by all three participants that someone who holds gold would struggle to make it "liquid" in order to exchange it for goods or services is just silly. You would never need to be in a situation where it was necessary to barter with gold in order to purchase bread or sushi. Even in Venezuela and Argentina now, you would simply go to a bullion dealer or a pawn shop (if need be) and convert your gold to local currency or dollars, and then exchange that currency for goods and services. All that would happen is that your gold would continually appreciate in terms of the currency into which it is being converted. Only in the case of all currencies devaluing to zero would one need to use gold as currency. That said, gold's primary purpose is as a long-term store of value for larger amounts of wealth. Silver is the precious metal of choice for use in a currency crisis. That's why most people I know who hold gold also hold some silver -- often in fractional quantities (like pre-1965 US coins) -- for the potential purpose of barter. Believe me, in a currency crisis, *everyone* with goods or services to sell would very quickly know the current purchasing value of gold and silver. People are very quick learners when it comes to things like that. As for myself, I routinely save in both gold and silver, and I regularly convert a couple thousand dollars worth of gold or silver into USD at a local bullion dealer. It's a very easy process, and I have calculated that I have earned in excess of 10% interest (in the form of appreciation) over the course of the past few years -- much better than if I had parked cash in a savings or checking account. Finally, there are a growing number of gold-savings companies like GoldMoney.com where one can save in gold or silver, and "spend" that savings as needed by using a Visa/Mastercard that debits your gold holdings (calculated to fractions of a gram) after doing a real-time conversion to your local currency for the purchase you are making. Easy as can be.
  • GL
    Guillaume L.
    7 June 2018 @ 14:42
    Good episode. It really looks like they took into account a lot of the comments. Great job!
  • SW
    Scott W.
    7 June 2018 @ 13:14
    To all the impending naysayers, It's impressive that you already know enough about fracking sand (last episode) and cork/wine such that you require but a twitter-length condensation for trade implications. For dummies like me, unfamiliar with most industry nuances, I find this interesting and informative. Different than the other content, sure. But I think Raoul provided a sound justification. RV - keep on!
  • V!
    Volatimothy !.
    7 June 2018 @ 11:31
    Next week, rising corn prices bad for liquor sales.