Fine wine performance suffers global downturn

Fine wines seem to have lost their resilience to the global downturn. The Liv-ex Fine Wine 100 index is down 7.4% on the year, according to the latest Liv-ex Cellar Watch Market Report.

The Liv-ex Bordeaux 500, which reflects the Bordeaux market, is down by 3.4% month-on-month at a time when it should reflect renewed investor buying of the latest Bordeaux vintage, on its release in June.

Since 2005, the Liv-ex index has shown a strong correlation with the gold price, but 2012 has proved a big disappointment. While gold has maintained its gains in volatile markets, the wine index has lost ground.

The Liv-ex decline reflects the poor performance in particular of all the top Bordeaux wines, the so-called First Growths, considered the blue chip investment wines. Instead, buyers have turned towards lesser known and cheaper Bordeaux names, while the Super Tuscans have continued to make steady progress.

Anthony Maxwell, publisher of the Cellar Watch Market Report, told Reuters the market “was probably due a correction, and if you look at the long-term charts, it makes sense. And it’s probably healthy.”

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