Fine Wine Market ‘Resilient’ To Economic Turmoil

The social and economic ramifications of Covid-19’s rapid spread have been felt on a global scale. Millions are forced to work from home while attempting to slow the spread of this deadly virus. Millions more are on the front lines attempting to help provide essential services and goods to those impacted. 

The economy has felt the global shockwave as well, with the Fed cutting rates half a percentage point and major corporations, like Macy’s, furloughing the majority of its employees. 

There is some good news for wine investors, though. According to Liv-ex, the UK’s main trading platform for fine wine, the fine wine market has remained stable amid this global crisis.

Though the future is unpredictable, particularly in the unprecedented situation we find ourselves in, we can reassure our investors with a few facts: 

• Fine wine has minimal correlation to global equities, with prices only impacted by supply and demand. 
• During the economic crisis of 2007-2009, fine wine only dropped to 10% while equities fell by more than 50%. 
• The Liv-ex 100, the industry benchmark, and the Liv-ex 1000, the broadest measure of the market, have outperformed global equities in the short and long term. 

Fine wines historically offer both steady returns and low volatility. That’s why it’s also a great time to diversify your portfolio, if you haven’t yet chosen to invest in a luxury item such as fine wine. 

Creating your own portfolio can be done easily with the assistance of a personal broker. Our U.K. wine brokers are always up-to-date with current market movements, emerging trends and market value. Liquid Opulence can also guarantee pristine storage conditions and security for your holding. 

If you’re interested in a free consultation with one of our fine wine brokers, please contact us today.