In 2012 Barclays wealth management conducted a survey and found that 28% of high net worth individuals have a wine collection and that 2% of their wealth is invested in wine. The idea that wine improves with age dates back to the 18th century and has worked on that premise right up until the current day.
The Liv-Ex Fine Wine Investable's Index
'There is no better time to invest into the fine wine market.'
Global economies are recovering from the last financial crisis and investors are returning to the markets looking for ways to diversify their portfolios whilst maintaining a level of risk appetite that suits them. The fine market over the past 15 years due to an influx of investment from Asian investors has already seen a boom and bust cycle starting in 2006 and ending in 2011. Since then the fine wine market has experienced significant growth and there are many signs that the market is returning to its full strength.
The graph above highlights the performance of the Liv-ex 1000 index from 2009-2019.
The graph above highlights the overall performance of the Liv-ex 1000 index from 2000-2020 (285.95% change).
The Power of Burgundy
In 2018, one bottle of DRC 1945 sold at Southerby’s for $558,000. With only 400 cases produced by the Romainee-Conti estate per year the demand for this luxurious brand of wine always out ways the supply.