Fine wine prices are holding steady during the covid-19 pandemic

by Jun 3, 2020News, Wine Trading Academy0 comments

Bottles in cellar: indexes have been demonstrating steadiness of fine wine prices, even with the pandemicBottles in cellar: indexes have been demonstrating steadiness of fine wine prices, even with the pandemic

Bottles in cellar: indexes have been demonstrating steadiness of fine wine prices, even with the pandemic

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.

AWEeuroindex.pngAWEeuroindex.png

 

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.

Tuscan age-worthy vintages available on the Alti Wine Exchange marketplaceTuscan age-worthy vintages available on the Alti Wine Exchange marketplace

Tuscan age-worthy vintages available on the Alti Wine Exchange marketplace

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.

abf 1888 portabf 1888 port

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

Featured


Five useful apps for wine lovers anywhere in the world

 


Investing in fine wine remotely in times of Covid, tariffs and stuck cargo ships

 


Alti Wine Exchange Indexes in 2020: despite it all, safe and strong returns for fine wine

 


Read and watch our fine wine investment tips and analyses

 


Introducing our internal index for fine wine investors

 


Outside the bottle | Prosperity is not automatic: a lesson from top wine producers

 


Fine wine withstood a tough year. What's ahead for 2021?

 


Why not give your loved ones a rare wine Christmas gift card?

 


What makes Seña a masterpiece of New World winemaking

 


Why people are turning their passion for wine into investment

 


How to build wealth with a strategy based on fine wine

 


Outside the bottle | Could 2021 be the year of hard assets?

 

Explore More from Our Blog

Ever heard of a wine cocktail?

DEAR READER, I hope some of you learned from the reader letter last week [hyperlink to Week Ten post] and checked your attics! You never know how much wine sits above you, waiting to be uncorked and decanted—on someone else’s dime! Dear Sommelier Ferdinand, I have a...

What on earth is a ‘Wine Decanter’?

DEAR READER, It’s come to my attention that many of you are ill-informed, misinformed, and frankly, uninformed about how wine is to be consumed. Were I only a wine enthusiast, it would be wholly dispiriting. But—wine is my profession, and I’m obligated to recognize...

“What’s My Next Question?” – Benjamin Kaplan

What’s My Next Question? On a random day like today 11 years ago, a legendary Harvard Law professor and lawyer, Benjamin Kaplan, died at 99 years of age. A rich, marked life that left an impact long after his last breathe. Apart from influencing the likes of Ruth...

Wine that Makes You Look Up

Wines that Make You Look Up Can you imagine having a device that magnifies your view and never thinking to look up, never pointing it toward the sky? Until August 25, 1609, nobody had. Enter Galileo Galilee, the man who changed the way we see and interpret all that is...

Should you be swirling your wine before consumption?

DEAR READER, Through all the melodrama of the past few weeks, I’ve neglected to educate the newcomers about the art of winetasting. So, I dug deep into my inbox for this query: Sommelier Ferdinand, I went to a ball last night and wasn’t aware of the proper pre-drink...

Sommelier Ferdinand answers “What’s the point of drinking wine from a hundred years ago?”.

DEAR READER, I’ve heard what you’ve all had to say, and I’ve decided to reach out to Jerry, once again, to bury the hatchet. Who’s to say if he would be open to making amends… but I made the effort, on behalf of all you insightful readers! I’ll keep you all updated on...

BOXED WINE AND AN ANGRY RECIPIENT – A FOLLOW UP

DEAR READER, Something unprecedented has happened. My assistant has received an additional letter from Jerry. Remember him—from last week [READ HERE] Well, our beloved wine purist wrote back after reading yesterweek’s column: Sommelier Ferdinand, I don’t care about...

Transcending Time through Wine

On August 11, 1888, The Scientific American published its 658th issue, replete with exciting findings. From “A Study on Whirlwinds,” to “The Distillation of Peppermint" and thoughts on the human conscious, this popular science magazine had already been around since...

Boxed Wine and an angry recipient.

What an experience, to receive all your criticisms. That would shake any normal individual. But I’ve spent years having my judgments under a microscope, so I’ve learned to shut my doors to it. You are all welcome to try—but I won’t be changing any time soon! Speaking...

Sommelier Ferdinand answers “What it takes to become a Sommelier”.

DEAR READER, As the grapes grow richer, so do the bottler and buyer! Wine is an investment, my dear readers. Never forget the long game! Now, for some advice you folks have solicited: Sommelier Ferdinand, I want to be a sommelier, like yourself. I have the respect for...

Harry Potter and the Magical Creation of Seña 2007

On July 21, 2007, J.K. Rowling released her seventh and final book of a most memorable series. In just 24 hours, Harry Potter and the Deathly Hallows sold more than 11 million copies! On that same day, in a land more fascinating than Hogwarts, Seña 2007 was getting...

This week Sommelier Ferdinand answers the difficult question “Which do you prefer: Red or White?

DEAR READER, Some wrote in after last week, wishing me happiness…? Sending me love…? What do you all think, I’m still in love with Matilde? Save your pity for someone who needs it, I beg you! Anyway: Sommelier Ferdinand, Which do you prefer: Red, or white? -Clarise...