The wine investment world - a brief market comment by Juliette Martin 2022-03-09 Like traditional asset classes, the appalling events in Eastern Europe have cast a (tiny) bit of a shadow over the wine market. Unlike traditional asset classes this does not mean prices sharply falling, then rallying, and then yo-yoing up and down, repeating again if necessary, but a much more sedate and sanguine sitting back and taking stock approach. There is no wall of stock flooding the market and buyers have not just suddenly disappeared, they may just be exercising a touch more caution than before the outbreak.The wine market has been enjoying a really good run for eighteen months or so but the exuberance witnessed in the run up to Christmas has calmed. Indices were still positive in February but trading has slowed a little and the gains are not so pronounced.Major indices over a one year period:My feeling is that the wine market has developed so much breadth in the last decade or so that it is less affected by global events than previously. Merchants and market makers are slower to mark down prices than before; they have survived Asian currency crises, the bursting of dot com bubbles and global financial disasters etcetera, etcetera and are better capitalised and have a wider audience. The volume and the diversity of the client base continues to grow which at this point in the wine market’s history is bringing more stability to underlying prices. As an asset class it offers probably better diversification than ever before and may even start to challenge Gold as a safe haven trade. The Kremlin’s gold reserves are well documented, and may be up for sale soon - luckily the same cannot be said about their fine wine holdings!Factor that in with some supply issues (thinking drought affected Burgundy), supply chain issues (thinking Brexit amongst others), and rising inflation and I think wine is still a good place to be. We would definitely recommend looking out for cut priced opportunities if they arise and there’s certainly no reason to panic. Not yet at least!And here's a look at the major indices over the last fifteen years: Posted in: Tags: investment, Value, track and trade fine wine Sign up for a free Wine Owners account or go premium. No commitment. No credit card required. View all subscription plans. Sign up for free Subscribe to The Collector Get market insight delivered directly to your mailbox by subscribing to our newsletter. Our Categories Filter Collector's Corner Events Fine wine management 2018 2021 ArnaldoRivera Barolo bdx2020 Bordeaux 2016 Bordeaux 2017 Bordeaux 2018 bordeaux 2020 bordeaux2021 bordeauxenprimeur Burgundy wine en primeur featured Fine wine analysis Fine wine appreciation Fine wine investment Fine wine pricing and valuations Fine wine provenance future drinks expo In the press Investment Research Market news and analysis Nebbiolo Press release Undicicomuni USA Vietti wine business owners Wine Owners Winemakers The Knight Frank Wealth Report 2023 - Wine Owners comment 2023-03-22 A look into Burgundy’s power moves in 2022 2022-12-15 2020 Bordeaux - In bottle tasting 9th November 2022 2022-11-17
The wine investment world - a brief market comment by Juliette Martin 2022-03-09 Like traditional asset classes, the appalling events in Eastern Europe have cast a (tiny) bit of a shadow over the wine market. Unlike traditional asset classes this does not mean prices sharply falling, then rallying, and then yo-yoing up and down, repeating again if necessary, but a much more sedate and sanguine sitting back and taking stock approach. There is no wall of stock flooding the market and buyers have not just suddenly disappeared, they may just be exercising a touch more caution than before the outbreak.The wine market has been enjoying a really good run for eighteen months or so but the exuberance witnessed in the run up to Christmas has calmed. Indices were still positive in February but trading has slowed a little and the gains are not so pronounced.Major indices over a one year period:My feeling is that the wine market has developed so much breadth in the last decade or so that it is less affected by global events than previously. Merchants and market makers are slower to mark down prices than before; they have survived Asian currency crises, the bursting of dot com bubbles and global financial disasters etcetera, etcetera and are better capitalised and have a wider audience. The volume and the diversity of the client base continues to grow which at this point in the wine market’s history is bringing more stability to underlying prices. As an asset class it offers probably better diversification than ever before and may even start to challenge Gold as a safe haven trade. The Kremlin’s gold reserves are well documented, and may be up for sale soon - luckily the same cannot be said about their fine wine holdings!Factor that in with some supply issues (thinking drought affected Burgundy), supply chain issues (thinking Brexit amongst others), and rising inflation and I think wine is still a good place to be. We would definitely recommend looking out for cut priced opportunities if they arise and there’s certainly no reason to panic. Not yet at least!And here's a look at the major indices over the last fifteen years: Posted in: Tags: investment, Value, track and trade fine wine Sign up for a free Wine Owners account or go premium. No commitment. No credit card required. View all subscription plans. Sign up for free Subscribe to The Collector Get market insight delivered directly to your mailbox by subscribing to our newsletter. Our Categories
