January Auctions Results Boost Wine Investment Optimism
UK Trade Pointing To Sustained Increase In Fine Wine Prices
Wine investment which saw a difficult 2012 might be off to a better year in 2013, with the Decanter magazine reporting that UK trade in January suggested a sustained increase in fine wine prices, boosted by ongoing interest following the Chinese New Year. February will also see some interesting auctions, with investors as well as collectors looking to take advantage of lower prices following last year's market declines.
January Auctions
On 14 February 2013, Decanter reported that Sotheby's Finest and Rarest Wines sale which took place in London on January 30, fetched as much as 1.4 million pounds, with nearly all lots sold. Decanter quoted Stephen Mould, Sotheby's head of wine for Europe, as saying that there was a tremendous amount of interest ahead of the sale, with a lot of absentee bidding. While some purchases were probably made for the Chinese New Year, the prices achieved for several lots were higher than those listed by merchants and brokers for comparable wines, which is often indicative of a heated market.
Bloomberg recently reported that January auctions in Hong Kong by Zachys and Acker Merrall & Condit and a sale earlier this month in Chicago by Hart Davis Hart Wine Co showed that investors and collectors were looking to take advantage of lower prices after the wine market saw prices fall in 2012.
Wine Investment Outlook
The auctions reports are adding to other signs of the fine wine market recovering. Bloomberg recently reported that in January, the Liv-ex fine wine 50 index rose 3.5 percent, posting its biggest monthly gain in two years. The Liv-ex fine wine 100 index rose 2.8 percent, whereas the Liv-ex Bordeaux 500 index added 2.24 percent in January. The FT recently quoted Chris Smith, an author of a report by the Wine Investment Fund, as noting that market conditions for 2013 appeared much brighter than the previous two years.
Decanter in turn quoted Miles Davis of Wine Asset Managers, as saying: €We've effectively been going through a bear market for five years. Prices have corrected and in many cases, first growths are back to 2007-2008 levels.€
Upcoming Auctions
In February, the wine investment world will see some interesting auctions, which will either support or disprove the fine wine market uptrend. As reported by Bloomberg, one of the more notable auctions will be Christie's sale in London, which features six bottles of Moet & Chandon 1911 champagne, estimated to fetch as much as 40,000 pounds. In addition to wines, the auction will also include a bottle of Napoleon Grande Fine Champagne Reserve Vintage 1811 Cognac.
Wine investment which saw a difficult 2012 might be off to a better year in 2013, with the Decanter magazine reporting that UK trade in January suggested a sustained increase in fine wine prices, boosted by ongoing interest following the Chinese New Year. February will also see some interesting auctions, with investors as well as collectors looking to take advantage of lower prices following last year's market declines.
January Auctions
On 14 February 2013, Decanter reported that Sotheby's Finest and Rarest Wines sale which took place in London on January 30, fetched as much as 1.4 million pounds, with nearly all lots sold. Decanter quoted Stephen Mould, Sotheby's head of wine for Europe, as saying that there was a tremendous amount of interest ahead of the sale, with a lot of absentee bidding. While some purchases were probably made for the Chinese New Year, the prices achieved for several lots were higher than those listed by merchants and brokers for comparable wines, which is often indicative of a heated market.
Bloomberg recently reported that January auctions in Hong Kong by Zachys and Acker Merrall & Condit and a sale earlier this month in Chicago by Hart Davis Hart Wine Co showed that investors and collectors were looking to take advantage of lower prices after the wine market saw prices fall in 2012.
Wine Investment Outlook
The auctions reports are adding to other signs of the fine wine market recovering. Bloomberg recently reported that in January, the Liv-ex fine wine 50 index rose 3.5 percent, posting its biggest monthly gain in two years. The Liv-ex fine wine 100 index rose 2.8 percent, whereas the Liv-ex Bordeaux 500 index added 2.24 percent in January. The FT recently quoted Chris Smith, an author of a report by the Wine Investment Fund, as noting that market conditions for 2013 appeared much brighter than the previous two years.
Decanter in turn quoted Miles Davis of Wine Asset Managers, as saying: €We've effectively been going through a bear market for five years. Prices have corrected and in many cases, first growths are back to 2007-2008 levels.€
Upcoming Auctions
In February, the wine investment world will see some interesting auctions, which will either support or disprove the fine wine market uptrend. As reported by Bloomberg, one of the more notable auctions will be Christie's sale in London, which features six bottles of Moet & Chandon 1911 champagne, estimated to fetch as much as 40,000 pounds. In addition to wines, the auction will also include a bottle of Napoleon Grande Fine Champagne Reserve Vintage 1811 Cognac.
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