Wine trumps equities

2016-11-09

Is wine an effective safe haven?

With markets braced for a correction following a Trump victory, in anticipation of a more protectionist United States and slower global growth, will wine continue to do a good job of preserving and being a sound store of value?

The fine wine market is up well over 24% this year, building on last year's single digit rises and is currently seeing very strong levels of trading activity as more and more private individuals with discretionary wealth seek to diversify and enjoy the fruits of their hard-earned cash.

Scarcity driven markets such as Burgundy, Northern Italy and California have seen consecutive annual rises in each of the last 10 years that we’ve tracked the market. Burgundy is up 327% over that period.

Liquidity driven markets, principally Bordeaux, has gone through its correction following the Chinese-inspired bubble of 2009-2011, and secondary market sentiment is once again positive.

Collectors who have bought fine wine in the UK are at a particular advantage thanks to the devaluation of Sterling. The very large body of fine wine stored in the UK - estimated at £6bn - ensures that secondary market prices in the UK are favourable.

Whether you are looking to sell or build, wine increasingly looks like a safe bet in an increasingly uncertain world.

To discuss your next step, contact us now or call us on +44 (0)20 7278 4377.