Fine Wine Index Versus Gold and Equity Markets

James Pala Europe’s finest, fine wine analyst:)

This chart says it all, and why are we here? Despite equity markets in the U.S reaching all time highs, the economy is still dragging itself into 2017. The word on the street is ‘Brace Yourself’.

Not if you’re a wine investor (Lucky for you).  The chart below shows the Fine Wine Index 50 which is the closest index you can get to the Bordeaux wines that we have recommended to you.  It tracks daily trades for the last 10 year physical vintages for Bordeaux First growth wines.  As you know we recommend a lot of first growth Bordeaux wines, we don’t buy unless we have physical possession (Meaning wines not yet in the bottle). And generally we buy when they are less than 10 years old.

This chart is a six month chart but below it lists the performance over 12 months for the Index compared to the DOW Jones, FTSE 100 and the S&P 500. I threw in Gold also since it has been heralded as the safety net for hedging against the stock market. As you can see, the wine index is smashing equities and gold leaving them for dust. In six months the fine wine index has more than doubled the growth of equities and gold with a 17% rise in wine over a six month period compared to 7% in stock markets and 14% in gold in 12 months! 27% growth for the last 12 months for this wine index, shows a serious rebound of the fine wine market. Not surprising really, when you look at how the economy is struggling. No wonder the big boys are putting their money into wine again. Are you?