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During October, the Liv-ex Fine Wine 100 Index fell 4.5 per cent, but despite what would appear to be gloomy numbers, wine investment professionals remain very optimistic. The market fundamentals are still intact, while demand from emerging markets including most importantly China (the main driver of demand), remains in growth.
Whilst it is natural to act defensively in the midst of a market correction, we know from experience that corrections within the fine wine market usually entice a new and increased wave of investment.
In fact, the recent price falls have already started to slow considerably and our colleagues within the wine trade together with our major investors are beginning to consider the market to be at an attractive entry point.
According to Liv-Ex: ’Studies of fine wine prices looking back 50 years have shown that, on average, fine wine has returned 12.5 per cent per annum. On this basis, we are now nearing this long-run average on a ten-year basis. The correction of 2008 did overshoot this level, yet anyone who bought in the last three months of 2008 was sitting on handsome profits just 12 months later.’
Our opinion: Fine Wine remains an outstanding medium to long-term investment and investors should take advantage of rather than fear the recent adjustment!
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Robert Parker (the world’s most influential wine critic) has made it clear he believes the 2010 Bordeaux vintage to be one of the greatest vintages of all time. Along with the recent vintages of 2005 and 2009 he states ‘'Take your pick – this news is either tragic or mythical, but I have tasted enough wines from 2005, 2009 and 2010 to realize that these may be the three greatest Bordeaux vintages I have tasted in my career'.
It may seem unlikely that there could be three truly outstanding vintages in such quick succession and of course there is a vested interest for wine producers, negociants and merchants to create hype around their latest offerings but independent critics and connoisseurs are united in their praise.
Investors in the 2000, 2005 and 2009 vintages will be aware of the profits that the best wines from the greatest vintages can offer so we anticipate tremendous demand for the best 2010 Bordeaux wines.
According to Parker, the best wines of the 2010 vintage include:
| Year | Wine Name | Rating | Maturity |
| 2010 | Ausone | (98-100) | Young |
| 2010 | Haut Brion | (98-100) | Young |
| 2010 | La Mission Haut Brion | (98-100) | Young |
| 2010 | Lafite-Rothschild | (98-100) | Young |
| 2010 | Latour | (98-100) | |
| 2010 | Petrus | (98-100) | Young |
| 2010 | Mouton-Rothschild | (97-100) |
The Dinghong Fund (Dinghong means 'In Red') plans to invest in €110m on wine over a five-year period starting this year, according to a representative from Bordeaux negociant Vintex & les Vignobles Grégoire, which will manage the fund’s wine buying....read more
Bordeaux has seen a raft of Chinese investment, with the region gaining popularity with investors from the East due to its connotations with top-end luxury and expensive investments....read more
An asset management company is offering what it claims are the world's first pure wine investment loans. ...read more
Bordeaux's 2008 vintage appears to be the biggest loser, ... 1996 vintage will set you back around £200 a bottle, compared with around £400 for the 2010. ......read more
Since its wine tax was abolished, Hong Kong has emerged as Asia’s most important fine wine trading centre and the world’s most lucrative fine wine auction market....read more
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