Published: Friday, 23 Oct 2009 | 9:45 AM ET

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Pu'er Tea

Prize-fighting crickets, purple clay chamber pots, out-there investments are nothing new to the Chinese. But if you prefer your investments not to chirp or reek, Pu'er tea may be a healthy and tasty alternative.

Pu'er (an aromatic tea from the hills of southern Yunnan) may not look like much — cow-patties, in fact — but can be worth its weight in gold, thanks to claimed health properties ranging from curing hangovers to shedding pounds.

While green tea is best fresh, Pu'er gets better, and more valuable — with age. The longer it ferments, the richer its taste, and stronger its health benefits. Vintage teas from more than a century ago have been known to cost $10,000 for 10 grams.

Like most investments in China, Pu'er tea has had its own rollercoaster run. When the earthy tipple became THE drink among cashed-up urbanites in 2007, prices soared, investors jumped in, tea farmers in Yunnan thought all their Chinese new years had come at once. That is, until the crash of 2008 – when speculators pulled the bottom out of the market.

The upshot? Prices are down to pre-boom levels, according to Lv Linqiao, a native of Yunnan who runs the "Pu'er Story" tea shop in Shanghai. She says Puer tea now sells for 200 odd yuan per kilogram, down from over 4000 yuan 2 years ago.

At these prices, there are less fakes (tea from elsewhere labeled as Pu'er) because there's no money in faking, Wu Xiduan, secretary general of the China Tea Marketing Association, said. Well-chosen and carefully stored Pu'er can pay off handsomely: Wu says Dayi teacakes from the '90s that were sold for 7-8 yuan now go for 100 times that.  

How to Invest 

So where does a tea-novice begin? Some basics — Pu'er tea is produced from Yunnan's Pu'er county (renamed from Simao county), "raw" or unfermented tea (shengcha), is the type that will appreciate in value over time, "ripened" tea or shoucha has already been fermented and is ready for drinking.

Even if you don't have the nose or tongue to tell apart a ten year old from a 15 year old — experts offer these simple tips:

• Choose fine teas from well-known brands such as Dayi, Xiaguan, Longsheng, Longrun. The better brands will use higher grade materials and employ more skilful processing.
• Always have the vendor brew the tea for you to taste, the color, fragrance and taste should be consistent even after multiple infusions. 
• Check that the tea liquid is clear and a dark reddish color, leaves are evenly shaped and supple looking; good tea will quench thirst while inferior tea will leave you unsatisfied. 
• Store tea in an airy place away from direct sunlight and strong odors, at an ideal temperature of between 20 and 30 Celsius, ideal humidity of 65-75 percent. Keep raw tea and ripened tea separate, turn over cakes of tea every 3 months to make sure it hasn't grown mould.

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