Wine Investment Beats Inflation

CONCERN ABOUT INCREASING INFLATION HAS LED TO A SURGE IN THE PRICES OF FINE AND RARE WINES AS INVESTORS FLOCK TO THIS INFLATION HEDGE.

The Liv-ex index for the fine wine market shows wine investment has remained remarkably steady in the current world situation, where other assets may be wobbling. The index has been around since 2000 and is an indicator of the fine wine investment market.

The Liv-ex index itself consists of several major wine indices, including:
• Fine Wine 50 (Bordeaux first growths)
• Fine Wine 100 (most sought after fine wines)
• Fine Wine 1000 (made up of world wine indices)

Overall, the market has been growing by an average of one percent. Champagne and Burgundy have been outstanding at 31% and 25%
growth, respectively. Champagne from the incredible 2008 vintage was particularly pursued by consumers and investors and prompted by anxieties over the supply chain.

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THE WINE INVESTORS
The people investing in wine are a mixed bag. However, as a generalisation, Asia was looking for high-end branded Burgundies last year. At the same time, it was Champagne for the UK and the USA. There has also been new money
coming into wine investment. Of course, some of this is due to worries about inflation, as we mentioned before. However, there have also been other more local factors like wine shortages due to frost or supply chain problems.

WINE FRAUD
Where there’s money to be made, you can bet there are also scams. And wine investment has its share. For example, auction houses selling fake trophy wines, which seems to happen more in the USA. There has been some talk of
using Non-Fungible Tokens (NFT) in the wine investment market. Australian producer Penfold ventured into the NFT marketplace when they partnered
with BlockBar to launch a limited edition NFT tied to their rare Magill Cellar 3 barrel of wine which converted to 300 bottles that the NFT could be redeemed
against. It was a spectacular success and sold out in twelve seconds! The producer noted that 80% of the sales were to 18 to 35-year-olds.

THE FUTURE OF WINE INVESTMENT
Wine has been a dependable investment that also performs well in a shaky stock market. There seems no reason to think that will change in the near
future. Inflation and other issues driving wine investment growth seem likely to continue for some time to come. To find out how the World’s leading wine investment company can help you protect your wealth against inflation, please scan the QR below, visit our website at www.oenogroup.com or call us
at +44 (0) 20 7846 3366.

Connect with the company and learn more about OENO Fine Wine and Whisky Fund Australia by accessing their deal room here.

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