The Telegraph ran an article in its Money and Investment supplement on the 3rd July on fine wine investment with the focus on performance, leading with the fact that fine wine values have risen by 20% over the last year.
Written by James Connington, the article recognizes that the market has matured and that there are now sophisticated platforms and tools to help investors looking at fine wine as an investment asset.
With data sourced from Liv-ex, the top ten performing wines in the five years to the end of May 2017 are listed, led by Petit Mouton 2011 which, albeit not normally viewed as an investment-grade wine, saw prices grow 165% from £690 in 2012 (at en primeur) to £1,831 in May this year.
The Burgundy region, unsurprisingly, saw the greatest representation in the listing, with four out of the top ten, DRC Grands Echezeaux 2006 seeing a 152% price rise from £6,960 per case to £17,532. The Bordeaux region generally would not have shown normal trends in this particular period of time as the First Growths and other top Bordeaux brands were the hardest hit by the sector downturn between 2011 – 2014.
Currency dynamics have influenced market since the UK Referendum vote in June 2016, but fine wine has a track record of strong, stable, growth over the long term and no direct correlation with the performance of more volatile financial markets.
The article provides a general introduction to investing in fine wine and the benefits it offers to investors to diversify their portfolios and asset exemption from CGT. As a member of the WIA, the Vin-X team provides a specialist service that has been developed specifically for investors in fine wine, for more information and guidance on the current best opportunities in the market, contact us now on 0203 384 2262.
You can read the Telegraph article in full via the link: