Uncorking Opportunities: A Look at Wine Investment Trends in June 2023.
Dear Investor,
I am writing to update you on several recent developments in the financial markets that might influence your investment strategies.
Interest Rates
The Bank of England has raised interest rates 13 times since December 2021, and the current Bank Rate stands at 5.0% for both the UK and USA, a level unseen since 2009. The increase in interest rates has sparked adjustments in borrowing and spending, prompting homeowners to voice concerns about increased mortgage payments by approximately £400 per month.
This economic change directly impacts the wine investment market by affecting demand and pricing. However, it is crucial to remember that fine wine continues to be a resilient and valuable asset class.
Currency and Job Market
The US dollar has appreciated around 15-20% against most major currencies over the last year. Additionally, jobless claims have reached their highest level since 2021, likely due to the adoption of AI technologies as companies downsize their workforce. This could have long-term implications for the global economy.
Housing Market
The housing market in the U.S has also experienced turbulence, with home prices experiencing their largest drop since December 2011.
Diversification of Investments
In the face of these changes, there has been a noticeable shift in investor sentiment towards alternative investments like fine wine. Investors increasingly recognise the potential of wine as a store of wealth and a means to diversify their portfolios. Wine investments have demonstrated their resilience during economic uncertainties, maintaining their value over the long term.
Cryptocurrencies and Precious Metals
While cryptocurrencies and precious metals have garnered attention, they come with a unique set of risks. Cryptocurrencies, including Bitcoin, are notorious for their volatility. Bitcoin prices recently surged from $27,000 to over $30,000 in just two days following the news that Blackrock applied to launch a Bitcoin ETF fund.
Gold prices have also seen significant volatility in the last 12 months, peaking at $2,075 per ounce in August 2022 but falling to $1,880 this week. This represents a decline of about 10% over the last year.
Fine Wine Investments
Given the current market landscape, fine wine remains a compelling choice for investors seeking stability and long-term growth. It’s a tangible asset that offers intrinsic value and has a great track record of delivering returns, as evident from your portfolio.
Global Stimulus Packages
It’s worth noting that governments worldwide have injected an estimated $10 trillion into their economies over the last five years through stimulus packages. While these measures aim to stimulate growth, they have also contributed to inflation. Consequently, we need to consider inflation as a factor in our investment decisions and develop strategies to navigate its impact effectively.
Conclusion
The current market conditions underscore the importance of strategic investment choices. Fine wine remains an attractive option, preserving capital, providing diversification, and serving as a store of wealth.
I’m actively negotiating excellent wine deals and would like to keep you updated if we secure any significant opportunities. Would you be interested in a call if I have a strong recommendation?
Kind regards
James Pala
Europe’s No 1 Wine Investment Analyst
Compare the Invest Into Wine Index with the London Vintners Exchange Index and the world’s stock markets in the table below.
Performance |
Two Year Period |
|---|---|
|
Invest Into Wine Index
|
+ 15.57%
|
|
Liv-ex Bordeaux 500
|
+ 21.0%
|
|
Dow Jones
|
+ 2.23%
|
|
Nasdaq Composite
|
+ 8.06%
|
|
UK FTSE
|
+ 5.56%
|
|
Shanghai Comp
|
+ 11.19%
|
Our expertise is in sourcing the best investment wines according to your budget & strategy. Contact us if you wish to increase the size of your portfolio and grow your future.
Be the best investor you can be by investing in fine wine for your future.
If you are selling wine?
Sell only first growth wines from your portfolio at year end. Other regions tend to be slower at the end of a bad year for the economy.
What are the best investment wines to buy now?
Buy what is cheap in the market at this period of the year. Look for the bargains, below market stock that can set you up for a good start to a profitable year in 2023.
The Figures for June
This month’s valuations showed the Bordeaux market decreasing by -1.19%. Champagne and Rhone Valley wines have decreased by -2.05%.
22.3% of the wines valued showed a positive return, while 34.5% showed a negative return, and 45.3% remained the same.
81.5% of our portfolio is Bordeaux while 13.2% is Champagne and Rhone Valley, with Whisky investments & others make up 3.3%
Overall, there was a -1.26% increase in the value of all wines this month.
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 SureHoldings.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
Did you know we offer a full bespoke service?
This is how your portfolio is managed.
- Wine Research – Source and negotiate new wines.
- Portfolio Analysis – Assess your portfolio for wines that need to be sold and allocate new wines to your portfolio.
- Logistics – Manage the delivery and receipt of wines with new buyers and sellers into the Bonded Warehouse in UK and France.
- Billing – Monitor funds from your wine sales and bill new wines to your portfolio to ensure an efficient cash flow to maximize your invested funds.
Read more below:
Investment Statement Discretionary investment managed portfolio
Discretionary Investment Managed portfolio Agreement
Questions?
