The transfer of investor funds into alternative and physical assets such as fine wine and gold continues to rise. The Daily Telegraph reported on the 8th January 2013 that the market expects this to continue in 2013 with one wine investment fund predicting a 14% increase in fine wine prices this year.
The price correction endured in 2011-12 resulted in the key market index, Liv-ex 100, finishing down 9.6% year on year. Bordeaux First Growths are now recognised as offering great value and potential upside to investors. Last year’s market fall is largely attributed to the impact of the eurozone crisis and a slow down in Asian demand.
You may recall my interviews in the media and trade press last July where I stated that the Vin-X analysts felt that the market appeared to have “bottomed out” and made recommendations to buy certain wines. This was supported in the second half of 2012, which saw prices stabilise with a number of wines recording strong performances, including those tipped by Vin-X in the summer. Furthermore, Liv-ex recorded that bid values also increased strongly in the second half of 2012, suggesting a return of confidence in the sector.
Looking forward, the Telegraph’s article supports the Vin-X view that 2013 holds great opportunity for wine investors and forecasts that the Liv-ex 100 will end 2013 14% above its 2012 finish point. The appeal of physical assets such as fine wine, which are relatively immune to inflation, will continue to rise whilst economic conditions remain uncertain and monetary policies further stimulate growth in inflation. This coupled with the current view that certain Bordeaux First Growths are undervalued presents a perfect opportunity to fine wine investors. To read the full article please click here.
For further information on specific wines that we believe currently offer strong investment potential contact your Vin-X broker, call 0203 384 2262 or email us on firstname.lastname@example.org. Alternatively if you are new to wine investment and would like more information to guide you on the market generally, the benefits and how to get involved please download our brochure here.