Future Prospects
The historic performance of this market speaks volumes. It has shown over 1% compound interest per month since the 1950's, and most recently has been identified by the London Based 'Liv-ex' in its newly launched 'Liv-ex Fine Wine Investables Index'; that the market has delivered a 12.6% annual compound growth rate since January 1988.
As the economic recovery in Asia appears to have begun, already we are seeing a resurgence in their buying power and love affair with anything 'Bordeaux'.
It has finally been accepted that Asia will continue to dominate this market, with clear indications that they have only just started!
Despite the global downturn over the past 12 months - sales of Bordeaux wine are up a staggering 36% in China alone, over the same period!
Recent media attention to the Fine Wine Market only echoes what is already known amongst veterans of the business;
FINE WINE IS ONE OF THE SAFEST BETS AROUND!
Auction houses across the globe have seen pre-sale estimates doubled - signaling exciting times ahead. Some market experts are predicting double-digit growth sooner rather than later, whilst others are looking to the past to predict the future; pointing out that in previous periods of financial downturns wine was the last to fall but the first to recover - quickly!
Hong Kong’s abolition of Import Duty, along with Beijing’s first Fine Wine Auction (beginning of June) - where bottles of Lafite Rothschild sold for four times their estimate; delivers a very clear message: that this market has a long a prosperous future!
