October 2014 Champagne Investment Report
Dear Friends,
As you know I’ve been recommending you build your portfolio with Champagne and Rhone Valley wines over the past few years. The Champagne market is a good market to be in right now because it’s fairly robust and aggressive. Prices are rising and Champagne is a good solid investment when markets are uncertain. The stock markets are not sure which direction they are going, one minute up and the next minute back down. Analysts say we are over heated, some say we are on too much of a bull run, others say that companies are performing and their balance sheets are healthy so there’s no reason why the market should not continue on its bullish trend. As for the Champagne market, well it doesn’t really matter, there’s always a ready band of consumers drinking it and taking care of consumption, whether its night clubs, restaurants, hotels or private clubs someone has a bottle to celebrate somewhere. Over time Champagnes just increase in value, and grows with inflation, in fact it has actually been growing at a higher rate than inflation when you look at how prices have increased over the last 10 years.
The London Exchange have a Champagne Index where they track Champagne prices. Assessing the charts for this index in one year from 2013 to 2014 the Champagne index has risen 21%. If you look back to 2004 until now the Champagne index has risen 175% in ten years. And that’s only the Index which is a broad base of Champagnes, if you bought individual Champagnes at the right price with decent ratings you could probably have made a higher return.
Chart courtesy of Liv-ex
