If you have spoken with any friends about investing in fine wine and they are not yet sure whether to take the plunge. This is a wonderful opportunity to show these results of the Knight Frank luxury investment index for Q1 2017.
The Knight Frank Luxury Investment Index, tracks the TOP 12 luxury investments, including but not limited to fine wine, art and classic cars. The results are amazing. Fine wine beat classic cars to become top of the index for the last 12 months and has gone up an astounding 25%!
Fine Wine results were second BEST over a 5 year period shooting up 61% and over 10 years wine has gone up 231%! Superb evidence why you can never have too much fine wine in your portfolio!
“Those investors who are willing to be patient enough will reap the rewards of fine wine over the course of a medium to long term period.”
Fine wine’s amazing performance comes from a huge comeback from top the Bordeaux chateau, which is the main pillar of investment wines.
In 2015, the entire region of Bordeaux saw growth of about 8% after the market saw declines from 2012-2014 following the huge bubble burst led by Chinese-fueled speculation for Bordeaux wines. Yet those investors who had bought before 2009 were still making great returns, even with the decline.
By 2016, it was totally different. the top Bordeaux blue chip wines drove the entire market with a growth of 9% in June. With Brexit, it further boosted the market with the drop in Sterling. The market continued to be on a charged frenzy as first growths rose 18% by July – November. The end result was a rise in over 30% in the fine wine market in 2016.
Bordeaux should continue to enjoy this upward bullish wine market as seen in 2017 till date. You may be wondering, why? Because the prices of fine wines are still only relative to what they were before 2011. Yes, thats right, you can buy a fine wine today for the same price it was 7 years ago!
Blue chip Burgundy is also enjoying an increase of up to 31% in 2016.
Elsewhere, Californian wines have seen explosive growth of 34% in 2016.
For Italian wines, the market rose 28% and is likely to perform similarly over the next year.
For more information, please read the article HERE.
