Sydney, Australia, Aug. 04, 2020 (GLOBE NEWSWIRE) -- Fine wine is one of the luxury items on which people invest deliberately. As a user, if you can still afford your favorite fine wine then you are fortunate enough. Because The Wine industry is severely affected by the pandemic. Being fine wine it is substantially more expensive than other table wines. Therefore, investing in fine wines is a great idea. Investing in the Fine Wine Market may be a bit sophisticated idea but can act as another investment option like investing in art, antique cars, and any other investment market. The Fine Wine Market Trends proved to be a very good source of income.
According to the source from Imperial Trust, Italy, France, and Spain are the top wine-producing countries worldwide, by a significant margin. In 2019, the wine production in Italy amounted to nearly 47.5 million hectoliters. In 2019, the total volume of wine produced is estimated to be around 260 million hectoliters worldwide, as per Statista.
The Rising Fine Wine Market
The fine wine market is going up at a good pace. The most convincing feature of the fine wine investment is that it provides absolute returns to the investors. The fine wine market like other markets had suffered many disruptions but today Fine Wine Market is growing quite steadily. The Fine wine returns have become less volatile over a period according to some of their top competitors.
The Historical Performance of the Fine Wine Market Will Shock You
Wine started trading as a commodity in the early 19th century but it started becoming a more popular and more luxurious thing after the 1970s. At that time, America and Asia were the most emerging markets and very competitive too. Although the Fine Wine Market is not that simple for a fine wine investor, it is the very first step to invest in this business. During the Second World War, the wine prices increased by 600% and after the Second World War ended, the prices came down to 50%.
Live-ex tracks indices of the Fine wine market. They have all the last year’s reports as well. Between 1970 and 2000, the trade cycle of Fine Wine Market just kike other markets both raised and lowered. From 2000, until today there is an upward climb. Different types of new wines are introduced and are having tough competition among each other.
Some Legends of Fine Wine Market
DRC, Petrus, Lafite have had very big growth since the past few years. Topmost expensive fine wines have names Screaming Eagle Cabernet 1992 For $500,00, Chateau Margaux 1787 for $225,000, Chateau Lafite 1787 $156,450 and a few more. The burgundy exports have risen to $1 billion last year, which is a big deal.
Bordeaux trade shared 50.5% of trades in 2020. The best burgundy fine wines in the market include:
- Domaine de la Romanée-Conti, Romanée-Conti 2006, 1 magnum per lot. Level 1.5cm. ...
- Domaine Leroy, Corton-Charlemagne 2011, 1 bottle per lot.
The Demand Is High and Supply Is Less in Fine Wine Market
The future of Fine Wine not only in this industry but also all the other markets depend upon the demand and supply. The prices depend upon whether there is an increase in demand or supply. In this industry, the demand is quite high but the supply does not meet the demand.
So wrapping up, investors need to keep these trends in mind before investing. Also, as an investor, you must have a good amount of savings available to you and there should be a proper storage place.
Keep the budget set for this business also research well before investing in a particular Fine Wine Industry because this will affect all other factors. Lastly, the argument for liquidity is everybody’s personal choice.
Media Details:
Person Name: Kenneth
Company: Imperial Company
Website: www.imperialtrust.com.au
E-mail: Info@imperialtrust.com.au