TNWG Wine Times: Ep 57: Is Fine Wine Investing on the uptick?

aplofthouse
20 hours ago
3 min read

FOCUS: Is Fine Wine Investing on the upward turn?

It has been a long time coming but there may just be some light at the end of the tunnel for fine wine investors. I've talked a lot in the past about the pain game of those of us in the fine wine investing game as an alternative asset source. However, don't forget I always reference the idea around investing in wine being a second pension and something which is a medium to long term engagement. Fast money or returns - this isn't.

However, what can be seen, if we speak quietly, is GROWTH!

In the month of September, the Liv-Ex 100 (top 100 wines in the world) grew by 1.1%. The Bordeaux Legends 40 as depicted above in the graphic, rose by 1.8% which matched the FTSE performance.

So is it time to buy?

Well, lets be clear - over the past 24 months, the fine wine market has been in 'correction mode' which has driven by a number of market dynamics - of which some are - a slowdown in China's luxury demand, strong competition in other alternative assets and a higher interest rate environment. Put simply, if like me, you are invested in fine wine - you would have been losing money for the last 2 years!

That being said, the month of September was the first month to see growth since November 2022! What is also true is that we are seeing a return to trading flows, with bidding volume and trading flows increasing, which confirms not just an increase in interest but of course, one of the problematic areas of fine wine investing - liquidity, improving too.

There is a lot of reasons to be bullish the fine wine market here, many believe for example that Champagne that was hit hard from 2022 highs, is now undervalued and has gone the other way, offering a cheaper entry point. The winder global economy is reducing interest rates still, which typically means there is a lagged response to fine wine assets but in a positive correlation manner. Meaning, if interest rates go down then typically fine wine assets rise in value as investors seek alternative purchases to gain yield returns.

What is the projected outlook for fine wine?

'Twenty years ago' is the answer, if you were to ask those in the industry when the best time to invest in fine wine was, and sadly I wasn't involved at that point. BUT I do feel that we are getting to a place where it does start to majorly make sense.

With the global macro space explained above, the investor profile and liquidity improving in the market plus the signs of an uptick in performance, coupled with a tight supply for the top producers and vintages, this maybe one of the best times to get involved.

For myself in regards to whether I would be adding to my portfolio here, I will be looking at October data closely to then check this is a trend. However, I am also conscious of the domestic space, where the Chancellor is set to increase taxes for UK residents. As such, this would be for me another kicker for looking once more at alternative assets as a source of income that is currently still free from Capital Gains Tax for UK taxpayers!

If you are looking at Fine Wine investing, do head over to my website where there are a large number of short videos explaining processes and the market in more depth. If you do want to invest in fine wine - please reach out directly and I can help with your account setup and choices too.

That's all from me this week, last week saw a wonderful Wine and Tapas session at The Library venue - if you haven't been before, it is a gem of a spot in Sheffield!

Christmas is coming, don't get caught out - make sure you are getting those client and staff orders in asap for delivery and having picked up 'Wine Entrepreneur of the Year 2025' from SME News a couple of weeks ago, I have now been shortlisted for 'Best Start Up of the Year' and 'Entrepreneur of the Year' in the unLTD Business awards too.