Wine Investment Report June 2020

A boost for Champagne and Rhone Valley

Champagne and Rhone Valley fine wine prices, took their turn to come roaring back in May, with a 1.8% increase overall. Despite what the news reported that Champagne was having a dull year due to parties and celebrations being shut down with the Coronavirus pandemic. The celebrations are likely to become more upbeat as the world opens back up, albeit slowly.

There must be a huge backlog of weddings waiting to happen. An investor in Champagne now, in advance of events and celebrations restarting, could deem prosperous in the future.

Supplementary wine markets like Champagne and Rhone often follow when Bordeaux prices take a big jump.

Bordeaux prices showed a modest yet stable increase.

Wines like Mouton Rothschild and Chateau Latour saw several vintages achieve good solid increase.
Chateau Latour released their vintage 2012 in May at a price point of 20% lower than the 2011. Taking a cautious step back into releasing older vintages.
The En primeur campaign was released yesterday with an online experience unlike any other for the first time in history. Wines were shipped out to critics homes for tasting and there were no usual trips to Bordeaux for tasting.
Usually during en primeur month, the secondary market takes a breather, but in reality it is not what we are experiencing.
39% of wines this month showed a positive increase.

The buying activity is building up in the wine market. We have seen far more enquiries from Hong Kong and Chinese Wine merchants than Europe of late. A sign that either the China market is consuming a lot of rare wine or perhaps they are starting to speculate again?

I would like to buy a case of wine today

If you are selling wine, Bordeaux Vintages over 10 years are popular at the moment. Quite easy to sell, with plenty of interest from merchants and buyers. But the bargain hunters are out there and prices must be set competitively.

If you are a buyer, This week we started highlighting wines priced below market value in RED on the latest offers page of our website. Prices discounted between 5 and 15%.
Simply copy and paste the wine name into wine searcher to check the price is well below market value. Its really easy, give it a try if you’re looking for a bargain and immediate profits. These deals are offered by other Investors who need urgent liquidity and lowered the price to attract a quick sale. Latest Offers Click Here

Check out the major indices table below, comparing our wine index with the London Vintners Exchange Index and the rest of the worlds stock markets.

If you have been putting yourself through a lot of stress lately with stock market related investments, maybe its time to switch and look at wine, since wine gives you zero stress and as good as, if not better growth.

Happy hunting!

Kind regards
James Pala

Founder
InvestIntoWine.com

[dt_fancy_title title=”The figures for May”]

This month’s valuations showed the Bordeaux market has increased by 0.317% for the month. Champagne and Rhone Valley wines also showed an increase of 1.788%.

– 38.9% of the wines valued showed a positive return, while 21.4% showed a negative return and 39.7% remained the same.

– 84.1% of our portfolio is Bordeaux while 15.9% is Champagne and Rhone Valley.

– The overall change for ALL the wines valued this month was +0.442%

Scroll down for the winners and losers for May versus June.

Below are the five, top and bottom movers compared to the previous month. Over 100 wines are valued each month. The wines valued are ALL OUR recommendations from the last fifteen years.

The new prices, are reflected in your online portfolio every month.

Please log on to our website investintowine.com to view your wine portfolio and email us back if you wish to ask anything about which wines that can help build your wine portfolio.

Yours Sincerely,
Client Services

To view our terms and conditions click here

[dt_fancy_title title=”Scroll down for the winners and losers for May versus June.”]

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Stock Markets, the Economy & Who’s going out for dinner?

Stock Markets rally despite a poor outlook on the economy
The stock markets continue to rally, the Nasdaq is reaching for an all time high. As the Federal reserve has promised to bail out companies, the money printing factory is in full force. As the Trump train is determined to win the election, they need the stock market to remain high. It could come crashing down anytime but its more likely to happen after the election. Companies are holding off share buy backs which would not bode well in the public eye if they are seen to be pumping their stock price during a pandemic.

Are we heading into a deflationary spiral?

It’s bad enough that we are seeing manufacturing slow down, business closures and an unemployment crisis. As Governments around the world print money in an attempt to stimulate their economy and support businesses. With a larger money surplus they hope there will be more spending. However this can also have an adverse effect. If there’s less spending then an oversupply of goods will cause the price of goods to become cheaper, businesses then make less profit. If they make less profit, they will cut staff and wages to maintain profit ratio’s. Deflation has been increasing at a rapid pace for the last few months, but nobody is talking about it. It’s often seen as a positive factor, but with debt fuelled asset price bubbles, deflation can sometimes lead to a financial crisis.

F&B Industry needs to rethink their approach
Things could get worse for the F&B industry, as restaurants need to rethink how they will attract customers to dine in. The social distancing measures that customers will expect could be a financial burden. Creating more space will mean less customers, or quicker turnover of tables to allow the flow of customers. This can be tricky to manage if you have a small space, especially in Europe where restaurants are often smaller and quaint.

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Wine Investment Report June 2020

A boost for Champagne and Rhone Valley

Stock Markets, the Economy & Who’s going out for dinner?

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