A high price bottle of wine is a considered a sign of wealth and class. Because of this the best wine is sold at auction for thousands of dollars per bottle for those that consider themselves the ultimate connoisseurs or those who just want to impress. Unfortunately, it has recently come to light that counterfeiting is a serious problem in this industry. It has been particularly bad in Asia where many are not experts on wine, but have the money to buy the best. Although the problem has only been publicized for a short time, those with more experience know it has been going on for quite a while.
Under these circumstances, one would expect the price of a bottle of wine to drop. Buyers should behave more cautiously and sellers should respond by offering less high quality wine. Interestingly, the opposite has occurred. Wine sellers/producers have continued to sell as they always have and prices have continued to rise. Why is this? I see two possibilities. The article mentions that those who discover they have been deceived into paying high sums for worthless fakes are ashamed to admit it. If no one ever admits they have purchased a lemon, then it is as if it doesn't happen. The other possibility is that demand for these wines is so high in proportion to supply, that it will take much more to drag prices down. This is likely because older wines are often considered the best. The idea of high demand and low supply also fits with common economic theory that large deficits will often result in black markets. Counterfeiting is not exactly a black market, but it fills the same roll.