Photo: Līga Gredzena/LETA
With the arrival of the New Year, it is often customary to celebrate this moment with a pleasant clink of champagne or sparkling wine. It must be said that the most exclusive of these intoxicating drinks can also be associated with investing. On the other hand, here – if just a year ago it was possible to say that this kind of high-class wine was the key to promotions, then in 2023 the situation was already completely different.
Namely, the value of the London International Vintners Exchange (Liv-ex) Fine Wine 100 price index has decreased by 13.4% during the year, according to available information. Luxury champagne has had an even worse previous 12 months, with the same Champagne 50 price index compiled by Liv-ex collapsing by a whopping 19% over the period. The share price, if you evaluate the change in the US S&P 500 index, turned out to have increased by a mighty 24% in 2023.
In fact, it’s hard to see an investable luxury wine category that has fared well in terms of price in previous months. The downsides are big and even bigger – Liv-ex Bordeaux 500 wine price index has decreased by 10.3% in 12 months, California 50 – by 12.2%, Burgundy 150 – by 16.2%, Rhone 100 – by 20.5% and Italy 100 – by 7%.
The value of the Liv-ex 100 index, which summarizes the price changes of the world’s top 100 wines on the secondary market, increased by approximately 7% in 2022. On the other hand, the year 2022 was very weak for shares, where their price, if you evaluate the change in the US S&P 500 index, decreased by a fifth.
It has been reported that an interesting investment story, if you have the right interest and the right hand, is offered by various alternative investments in luxury goods, which can include high-end wine, watches, works of art, some collectibles, vintage cars and even high-end class handbags. In this sense, the most popular are investments in high-class wine, which has developed its own large market. This means that one or more bottles of very high quality wine can be bought and stored with the idea that they will increase in value over time and eventually sell for a higher price.
2024-01-02 08:04:08
#bubbles #pouring #champagne #deflated
