Businesses and the financial markets might have suffered in recent months, but data from BI Wines and Spirits shows the value of liquid assets
Fine wine continues to resist correlation with other asset classes, even in the face of unprecedented economic shocks, according to data from BI Wines and Spirits.
The stability of wine during a global pandemic represents a great opportunity for investors, said the firm’s managing director, Gary Boom. He added that vintages across the 2000-2015 range represent particularly clear buying opportunities.
‘Currently there is good momentum behind US and Italian wines (particularly Tuscan wines, where the 2015 and 2016 vintages have been very strong,’ said Boom. ‘Bordeaux is a good core backbone (and takes advantage of the current market opportunities). We also continue to see performance potential in the prime segment of Champagne and Burgundy.’
Despite the general resilience displayed by wine as a whole, some wine varieties have been hit by the crisis, including young Bordeaux. Boom said this was driven by trade inventory derisking rather than general market sentiment: ‘In the most significant cases these moves have been 15%+, although the majority are under 10%. One example is Haut Brion 2015, which is down almost 20% despite having perfect scores and being a likely successor to the legendary 1989.’
Elsewhere, sales of rare wines and spirits to Chinese buyers jumped by 25 per cent in March. ‘We certainly saw a softening in demand from Asia at the start of the year, but there has been an exceptional bounce back in recent weeks’, said Boom.
Last month, Asia accounted for 60 per cent of BI’s total sales, compared to 40 per cent in the previous year. This coincided with the region’s emergence from some of the measures introduced to restrict the spread of coronavirus.