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.
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.
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.
Uncertainties aggravated by the pandemic reinforce how assets like fine and rare wines fare as profitable long-term investments
21 Oct 2020
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