Montcharm Wine Traders said vintage corrections for some of the world’s finest wines have created favorable entry points for investors.
The appeal of investing in fine wine lies in its rarity and ever-increasing demand. Prices for the world’s most sought-after wines are soaring as supply levels fail to keep up with growing interest from wealthy collectors. In 2018, a bottle of Domaine Romanée-Conti – de la Romanée-Conti 1945 sold for an astonishing $558,000 at a Christie’s auction, making it the most expensive new wine ever sold. A record was set.
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Since then, there has been a period of weakness in key vintages that has removed some of the froth from the market and created a potential entry point for long-term investors in this asset class.
The Liv-ex 1000, a broad measure of the fine wine market, has declined by 13.3% over the past year, but the long-term trend remains unchanged. Within the broader index, there are vintages of key constituents such as Mouton and Lafite-Rothschild, which are trading well below their previous highs.
Despite the rise of tech stocks and AI companies, Montcharm Wine Traders believes so-called “passion investing” remains a competitive investment option. The Liv-ex 1000 index has returned 15.45% annually over the past 20 years.
The recent cooling period in 2023 has created attractive buying opportunities for investors and collectors alike, says Matthew Knight, head of private sales at London-based luxury wine specialist Moncharm Wine Traders. It is said that there is “Investment-rated wines provide a great entry point for new collectors to establish their first holdings,” Mr Knight said.
“After all, no one wants to buy at the top of the market. For investors with a medium- to long-term perspective, being able to buy prime vintages like Mouton and Lafite-Rothschild at current levels is It is indeed a very attractive proposition.”
Check out this free guide to learn more about fine wine investing.
