Fine wine has emerged as a popular alternative investment asset class in recent years. With wine prices rising steadily and double-digit returns, many investors are allocating part of their portfolio into fine wines. This article provides the latest news and updates happening in the wine investment industry today.
Wine outperforms other assets with 13% annual returns
Numerous research reports have shown that fine wine consistently generates double-digit annual returns over the past decade, ranging from 10% to 13%. This significantly outperforms more traditional assets like stocks, bonds and real estate. For example, the Liv-Ex Fine Wine 100 index recorded a 13% gain in 2022 amid a turbulent year for financial markets. Top wines from Bordeaux and Burgundy remain highly sought-after.
Record high trading volumes on wine exchanges
Wine exchanges and trading platforms have reported record trading volumes and new customers entering the wine investment market. This shows that wine investing is gaining more mainstream popularity. For instance, major platform Wine Owners saw trade values increase 45% year-on-year in November 2022. More investors are diversifying into wine due to its inflation-hedging ability and resilience during market downturns.
Investors shift allocation to high-quality wines
Industry experts observe a recent trend of investors focusing on rare, high-quality wines from iconic producers when building their collections. These include first-growth Bordeaux, Grand Cru Burgundies, cult California Cabernet Sauvignons and premium Champagnes. With the wealthiest wine aficionados competing to acquire top wines, their prices and future growth prospects remain strong.
Experts forecast continued price growth in 2023
Despite headwinds in the global economy, fine wine market outlook remains robust in 2023. Low wine yields from poor weather conditions will limit supply growth. On the other hand, demand from Asian markets like China and Hong Kong continues rising rapidly. Scarcity of top wines and growing demand from investors and drinkers create the perfect conditions for sustained price appreciation this year.
In summary, key wine investment updates today signify enduring strength in this alternative asset class and positive growth prospects ahead in 2023. Investors are increasingly allocating funds into fine wines given double-digit returns, high trading volumes on exchanges and bullish price predictions. Premium collectible wines, in particular, are expected to see prices continue rising.