Don’t miss the ride – wine investment market offers double-digit growth potential in 2013

2013 wine investment

 

In July 2012 (following a brilliant performance for its clients by beating the market by 11% in 2011) Vin-X were once again ahead of the curve being the first to call an end to the price correction (Harpers Wine & Spirit Trade review, July 2012), see Liv-ex graph. The Autumn saw that position stabilise further and Liv-ex recently announced that November and December 2012 witnessed a cumulative 3.4% increase in the Liv-ex Fine Wine 50.

Certain blue-chip First Growth wines such as Margaux, Haut-Brion and even Lafite are significantly underpriced against trading highs of eighteen months ago. As a result there are some excellent opportunities for investment with the market poised for an upward ride. Certain vintages will always excite investor interest. 2005 for example is recognised as a year with a safe and strong reputation with some market commentators suggesting that Robert Parker underscored the vintage, meaning there are some gems to be discovered.

2012 trade was dominated in terms of both volume and value by the 2009 Bordeaux vintage, especially the classic 1st Growths Lafite and Mouton Rothschild. However the more affordable Montrose, Pontet-Canet and Angelus (whose value across its ten most recent vintages has increased 19% since August 2012) also featured highly.

Parker will re-score the 2010 vintage in early spring. Given the significant effect of the scoring last year on the 2009 wines, where £100million in value was added to the vintage overnight, there will be great anticipation. Initial scorings suggest it will potentially be on a par with 2009.  Vin-X clients have invested in 2010 en primeur and are now positioned for any movement, in particular Pontet-Canet and Pichon Baron are expected to prove shrewd purchases. For those who have not yet taken a position there could be value in acquiring 2010s en primeur now.

A 3.4% increase in the Liv-ex Fine Wine 50 over the last two months indicates green shoots are sprouting at the start of 2013 and are a clear reason to buy at the bottom of the market.

We are strongly optimistic and endorse market predictions made by the Daily Telegraph earlier in January forecasting a 14 % rise in the market in 2013. The early positive indicators of a return to global consumer confidence. Savers are seeing inflation eat away at cash accounts and ISAs are reported as delivering an average 2+% return. The savvy investor is looking at alternative ways of getting better value out of hard-earned cash. For those with a medium to long-term plan fine wine has to be a serious option and 2013 offers significant pricing opportunities. For more information contact a member of the Vin-X team on 0203 384 2262.