Hi, wine lovers and investors. Hope you’re doing fine in the midst of the ever anguishing news we read from all around the world during the covid-19 pandemic.
I’m Breno, bringing some very good news for all of us who invest in fine wine.
Our recent indexes compiled by senior financial advisor Sergey Glekov have demonstrated how fine wines from Tuscany and Portugal are withstanding the financial stress that markets have been under lately.
It shows how important it is to hold non-correlated assets such as fine wines, especially in times of downturns in the market.
Fine wine market is running stable amid covid-19.
Some good news to complement this: as Barron’s has reported, following new figures from the Wine Market Journal (WMJ), the fine wine market is suffering considerably less volatility during the covid-19 pandemic than the global stock market.
From the fourth quarter of 2019 until 20th May this year, the WMJ’s Top500 Index for fine wines (that tracks global wine auction trade and market data) was up just under 2%. Meanwhile, the Dow was down 13.88% for the same period, while the S&P 500 was down 8.02%.
Other recent reports, such as our indexes, have been following similar trends, showing that eventual losses suffered in the fine wine businesses have been way more subtle than what the traditional markets have been experiencing.
Take in account the comparison in recent performance of the Alti Wine Exchange wine indexes versus key European financial indexes.
Top takeaways from Italy and Portugal
According to the WMJ index, red Burgundy prices, which were already high and had skyrocketed before the pandemic, fell 8.7% in the end of the abovementioned period – a potential sign of investors going for less expensive choices in the name of safety.
As a probable correlated dynamic, Italian wines experienced went up 5.76% for the year through May 20. One of the main drivers here is Tuscan wine, arguably the leading choice for Italian vintages worldwide.
Our recent index of price dynamics of Tuscan wines peer group over last two years, by Sergey Glekov, shows that despite discreet losses during the pandemic, the trend for Tuscan fine wines keeps going up.
Well, if you’re thinking Tuscany, we have fantastic three fantastic Tuscan vintages available for investment on our marketplace: the finest ones by Donatella Cinelli Colombini, Tenuta Dell’Ornellaia and Marchesi Antinori.
Meanwhile, who’s been doing quite well is our beloved Port, the fantastic fortified wine from Portugal: it’s up 9.76%, according to WMJ.
Sergey Glekov ratifies this trend, showing very positive results from the fortifieds from the last wine frontier in Western Europe. We also have excellent Portuguese fine wine options available for investment, from this ABF Quinta do Vallado 1888 Port to other typical choices such as Douro and Moscatel.
Of course, the good news shouldn’t influence heavily on what you have already been doing: investing in bottles of age-worthy fine wines and keeping them stored for a good amount of time to let them age and appreciate in value over the years.
But this only proves what we have been saying here for a while, and the articles below this post will tell you more: investing in fine wine is a very wise choice to protect your portfolio and make sure you have excellent gains in the long term.
Oh: for more of our wine indexes, here you have them.
And here’s what you must know to invest in fine wine.
Until next time!
Our articles on fine wine investment