Top Fine Wine investments track safe haven Gold’s performance in 2020

In times of economic uncertainty investors traditionally turn to safe havens with Gold the classic ‘go-to’, but it is important to note that Gold’s 14% 1H 2020 growth is matched by the top performing fine wines.

The yellow metal saw record highs in July, achieving values not seen since September 2011, approaching US$2,000. Commentators have pointed to a current ‘shortage’ of physical gold due to previous mine closures and Covid-19 impacting mining productivity, influencing performance driven by investors seeking sanctuary in troubles times. As we all know, investment in tangible assets should also be diversified and fine wine offers an important opportunity to enhance performance and spread risk in a balanced portfolio.

The top performing fine wines on Liv-ex matched Gold’s 14% growth in the first half of this year as can be seen in the table below.

Liv-ex Top Performing wines 1H 2020

Region Wine Vintage Price at 01.01.20 Price at 

30.06.20

6-month performance
Burgundy DRC, Tache 2007 £33,048 £38,004 15%
Italy Sassicaia 2009 £1,550 £1,770 14%
Champagne Pol Roger, Winston Churchill 2002 £1,590 £1,796 13%
Italy Tignanello 2010 £840 £940 12%
Italy Sassicaia 2010 £1,600 £1,790 12%
Champagne Louis Roederer, Cristal Rosé 2009 £3,600 £3,950 10%
Italy Giacomo Conterno Barolo, Riserva Montfortino 2000 £8,268 £8,964 8%
Champagne Premier Jouet, Belle Epoque 2008 £1,692 £1,824 8%

Source: Liv-ex.com July 2020

Notably, Italian and Champagne wines featured strongly in the highest price risers and also in terms of market share on Liv-ex in the first half of 2020. Growing demand by investors for the top wines of these regions has been further enhanced with their exemption from Trump’s tariff increase in 2019. The quality and value of these wines is now well recognised and including Super Tuscans, rare Barolos and top vintage Champagnes are now an essential to ensure that a fine wine portfolio is diversified to deliver best possible returns.

Top Fine Wine Market Movers in June 2020:

Region Wine Vintage Price at 31.05.20 Price at 30.06.20 1-month performance
Champagne Moet & Chandon, Dom Perignon Rosé 2006 £1,903 £2,126 11.7%
Champagne Pol Roger, Sir Winston Churchill 2002 £1,575 £1,738 10.3%
Champagne Louis Roederer, Cristal 2005 £1,280 £1,410 10.2%
Champagne Louis Roederer, Cristal 2004 £1,730 £1,894 9.4%
Champagne Moet & Chandon, Dom Perignon 2003 £1,140 £1,230 7.9%

Source: Liv-ex July 2020 (Mid-price 12 x 75cl)

Champagne, in particular, enjoyed an effervescent June 2020, despite lock-down, with the region accounting for the top price performing wines that month. Thirty-nine of the fifty wines that make up the Liv-ex Champagne 50 index saw price rises in the month.

On trend, as opposed to individual wines, Liv-ex reported in its July Trade Report that fine wine continues to outperform challenged financial markets – more information in our upcoming Fine Wine Market Report – and with a performance that stands well against gold, investors should consider fine wine as an important asset to diversify portfolios. Understanding the tax advantages offered is also important – download the Vin-X Report on the Tax Treatment of Fine Wine in 2020 for current information.

To get an update on which wines you should be adding to your collection contact us now on 0203 384 3362 and speak to one of our expert portfolio managers.