It’s not new news that fine wine has a demonstrable track record of delivering long-term stable growth and protecting capital during periods of economic stress and recession. 2020 has illustrated this asset performance with absolute clarity during a global pandemic.
2020 so far has illustrated perfectly fine wine’s fundamental asset performance as uncorrelated to volatile financial markets, delivering stable growth during global economic distress as the world learns to deal with a pandemic. As a tangible, low-risk investment.
Key investment wines have delivered double-digit growth in just one month throughout 2020 showing that some investors are achieving dynamic growth over a very short period.
California’s iconic fine wines are ‘on-trend’ for investors and in a recent blog we commented on the USA fine wine market having shown outstanding growth within the last year, more than doubling its share of trade value on Liv-ex compared to 2019.
In a year where one would naturally think there hasn’t been much to pop a cork about the Champagne market is fizzing, as a result the Liv-ex Champagne 50 is the top performing regional index seeing a 5% growth trend YTD at the end of September 2020.
Robert Parker, the ‘Godfather of Wine Critics’, retired from his public role tasting and rating wine over a year ago but he continues to influence the market. His legendary palate has identified and promoted some of the most outstanding wines in the world.
Every investor wants to understand the value of their investment wines, to be sure they are paying a fair price for fine wine and there are a number of factors that influence wine valuation.
Liv-ex, has reported that USA fine wines have more than doubled their share of trade value on the exchange compared to 2019.
Whilst the broadest measure of the market, the Liv-ex Fine Wine 1000 rose 0.09% in August following four months of gains, the Champagne 50 is currently the best performing regional sub-index.
Following its third consecutive month of gains, the fine wine market continues its upward growth trend with July seeing an increase of 0.54% on the Liv-ex 1000; but, where are we seeing the growth in this broadening market?