Last week we ran the most recent Liv-ex fine wine trading information which coincided with the Liv-ex blog posting that the Fine Wine 100 fell steadily further in May and the index dropped by 4.01% to 278.28.
Live-ex sais that as the Bordeaux market continues to soften, the majority of wines in this month’s risers were from outside the region, with buyers choosing to look for wines elsewhere. Petrus still remains a classic choice for investors, and the price of its vintages have not suffered in the same way as its Bordeaux siblings. Lack of confidence in the region’s wines – and the First Growths in particular – is evident in this month’s fallers.
Reuters advised that the present economic climate presents a positive opportunity to diversify a portfolio. You don't have to take a college finance class to know the secret to investing is buy low and sell high and the steep drop in fine wine prices - down between 25 percent and 40 percent from a year ago - indicates serious investors could swoop in on some iconic wines as a significant discount.
"I think there's plenty of air left in this bubble. There's more of this drop to come," economist and author Robin Goldstein said on the sidelines of the American Association of Wine Economists' (AAWE) annual conference at Princeton University last week.
Read more, Reuters