December 2019 Wine Investment Report
The Latest Prices for December 2019 are updated!
Your Wine Portfolio Was Updated on the 1st of the Month
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The fine wine market remains soft and prices drop in December.
The latest valuations for December have shown a further slow down in the wine market, prices have dropped around 5% percent in a number of investment wines. The market is slower but wines are selling when offered at the right price.
There’s a really big opportunity in the wine market right now. The last six months have been slower than normal but everything we have invested was bought at a sharp price. I’m able to negotiate at very low prices currently because it’s a real buyers market.
I don’t expect the market to remain soft past Q1 2020 because there are some very key factors that are going to influence the market in the next six months.
The British elections will have an impact on the UK pound and the Euro dollar. This should give some direction to Brexit and I’m confident the wine market will pick up as a result of the outcome. It has affected the wine market because of uncertainty between Europe and the UK. If this uncertainty diminishes then the wine trade should receive a boost of confidence.
Then there are the U.S elections next year, the outcome of these will also be a big decider in the direction of the U.S economy which always impacts the global economy. If Democrats win then the economy will likely suffer, and a big crash in the stock market would be expected. If the Republicans win or Trump gets re-elected then the economy and stock markets may rally again. The wine market did do very well in 2016 and 2017 and it’s slowed down in the last six months because the stock market has continued its rally to epic and somewhat unbelievable levels. How long can the bullish growth continue? It almost feels fake, doesn’t it? There’s cheap money flowing into the market from share buybacks as companies can loan money to buy shares in their own company at very low-interest rates.
The global market has confidence in shares as of writing this update, but I’m not convinced this will last and I do not foresee this rally as long term sustainable. If stocks fall, then expect wine and other hard/safer assets to boom. If the stock market does continue to rally then there could be a silver lining to the wine market. We will see slower but sustained grown in the wine market because if investors are in the stock market and the consensus is that it’s peaking then at the same time they will hedge losses from buying fine wine and other assets like gold etc.
If you are selling wine, lower prices in 5% increments to attract a buyer. There are buyers out there, in fact, the smart buyers are snapping up bargains in the market in expectation of a bull run in fine wine. Champagne is in demand and we have made decent gains in the last 3 years so take advantage of them.
Remember our recommendations are negotiated for you before you see them, which means you can often buy a new recommendation below market to offset any older wine that you are selling. The younger vintages will give you greater opportunity for faster and more aggressive growth.
If you are a buyer, I have been able to secure some amazing deals with ‘negociants’ on new vintages lately and hope to have more in the near future. There is a great opportunity to negotiate and it is an opportune time to jump into these younger vintages which can be found at a bargain right now. The growth potential of them is likely to be at least 12-15% per year if you find the right deal. Look out for my next recommendation. I said this last month and I’m saying it again this month.
All the indicators are pointing to a potential boom in the fine wine market in 2020, this is the time to invest big in wine.
Remember, “Buy low and sell high”.
See below the winners and losers for December versus November.
Below are the five, top and bottom movers compared to the previous month. Over 100 wines are valued each month. The wines valued are ALL OUR recommendations from the last fifteen years.
The new prices, are reflected in your online portfolio every month.
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