Wine Investment Update November 2012
If you were following the market closely we saw last month there were some upgrades of wines in classifications, the London Vintners exchange was up and Rabobank are saying that global wine stocks are at their lowest point in ten years.
This month the OIV (Organisation of Vine and Wine) have issued a report saying that due to the poor weather conditions this year worldwide production of wine is down, France is down 20% and these levels of production are at the lowest since 1975 and the knock on effect for consumers will be a rise in price. It pretty much confirms what Rabobank are saying.
The London Vintners exchange finished .06% up (Point zero six percent) not a huge movement but this still leaves a lot of bargains on the market and opportunities for investment into high grade wines. An investment into wine right now could stand you in good stead five years from now..
With the London Vintners exchange slowly rising since August at least we are seeing some positive signs that the Bordeaux fine wine market could be picking up again. It is probably too early to tell for sure but keep watching this space.
The Chief economist at the IGD (Institute of Grocery Distribution), predicted online wine sales are set to double from £5 billion this year, to £11 billion in 2017, this is going to have a big impact on fine wine prices because more and more fine wine companies are moving to online platforms.
Right now it is an excellent time to be building your wine portfolio. Prices are lower than they have been for a number of years and if you pick the right wines at the right prices there is a good chance of sustainable growth over the coming years. The current increase on prices is much more steady than its been over the last year where some months prices were up then the following month they dropped again. This is a much more steady and stable increase with less volatility on prices. If you can add to your portfolio right now it will put you in a great position.