US Election Day; Fine Wine sees record growth with index up 1.16%

Peter Shakeshaft HeadshotFine wine investment is one of the few good news stories happening right now! As an investment, fine wine continues to deliver stable, impressive growth during this tumultuous period and as the US ballots reach their critical final hours, Liv-ex announces Napa Valley’s investment wines led the exchange to the second largest trade month in the last decade in October. The key benchmark, Liv-ex 100 rose 1.16% last month, the fifth consecutive monthly gain and a cumulative year-to-date growth of 4.01%.

Source: LIV-EX November 2020

Trade in US fine wines recorded the highest value in a month on record. This, combined with the prices achieved for physical Bordeaux, some Rhone and Champagne supported the market’s leading benchmark 1.16% growth.

 

The number of unique fine wines traded on the exchange in October set another new high for 2020 and the volume remained consistent with September’s record high supported by some key releases. All of this illustrates fine wine investment’s resistance to the negative impact of Covid-19 and the current significant geo-political and economic forces at play, delivering stability in contrast to volatile financial markets such as the FTSE 100.

 

We will learn in the next few days whether the world will suffer or benefit from, dependent on your view, another Trump Term or a very different administration and either way the financial markets will respond accordingly. We can expect levels of volatility no matter which way the vote goes. Once again fine wine will most likely weather the storm and provide a relatively unique stable ‘safe haven’ for capital in the months ahead.

 

For more information on the fine wine investment market and to discover which wines are currently offering double digit growth potential, contact us today on 0203 384 2262 and download our Guide to Investing in Fine Wine.