New World Fine Wine surges ahead

Liv-ex, the fine wine market's premier exchange, has a number of indices to measure performance and the broadest of these is the Liv-ex 1000 which is composed of a number of sub indices. It would seem that since the market peak in May 2011 the best performer has been the humble Rest of the World 50 which has increased by 40% over the last 5 years. This index is composed of the last 10 vintages of only 5 wines so is quite narrow but is also an indicator of the diversification that has taken place in the fine wine market over the last few years. Bordeaux still dominates with its 80% market share but increasingly investors are looking to buy Opus One from California (pictured), Vega Sicilia from Spain and Penfold's Grange from Australia, all of which we have recommended to clients.

However the MD and Founder of Liv-ex reminds us that the main action will revert to Bordeaux in the spring of 2015 for the en primeur tastings of this year's vintage. He thinks that traditional collectors of Bordeaux may have quite empty cellars after the disappointing harvests of recent years so may be keen to return to the fray again. On the other hand collectors may have been seduced by the quality of the New World. See below for full article.