Fine wine’s quiet start to 2023 picked up pace through Q1, find out which top performing wines led growth.
Q1 -Wine investment headlines
- Leading investment wines continue to enjoy double digit returns
- Fine wine assets maintain stability in volatile market conditions
- Wine investment returns still outperform other traditional assets over 1 year
- At the end of Q1, Burgundy's average 12-month growth of 8.8% overshadowed FTSE's 1.4% and gold 2.7%
See our Q1 2023 MARKET REPORT
(Data source: Liv-ex.com. Data at 31.03.2023)
Top five investment wines in Q1 2023
Wine | Region | Growth |
Domaine Jean Louis Chave Hermitage 2019 | Rhone | 82.5% |
M. Chapoutier, Ermitage Le Pavillon 2011 | Rhone | 54.1% |
Opus One 2011 | California | 35.7% |
Gaja Barbaresco 2015 | Piedmont | 35.4% |
Chateau Palmer 2013 | Bordeaux | 28.8% |
Surce: Liv-ex Q1 2023 Market Report, April 2023
Q1 fine wine market performance
The first three months of 2023 saw energetic trade on the fine wine market with growth in the volume and value of fine wine transacted. Liv-ex reported that its 620 merchant members hit a record total £118million of live bids and offers on the exchange in February.
But whilst trade was strong, price performance was more muted. Fine wine values remained relatively static in Q1 with some price drift. There were pockets of growth in January and February influenced by the Burgundy 2021vintage releases and Italian 2020 wines entering the market.
March saw the first signs of more meaningful uptick in values across the regions and then the Silicon Valley Bank failure hit global financial markets and volatility returned.
Volatility and safe havens
Central Banks and Governments responded immediately and solutions were found for both SVB and Credit Suisse. Investors rushed for tangibles, demand for Bordeaux in particular rose as investors sought a safe haven. Gold recorded its strongest monthly boost for some considerable time. The yellow metal saw its value rise 7.6% in March taking its Q1 2023 performance to 9.4%, a considerable move up from just 0.5% total growth in 2022.
Fine wine performance compared to gold
Asset | 1 year | 2 years | 5 years |
Wine: Liv-ex 1000 | 3.8% | 29.5% | 41.4% |
Liv-ex Burgundy 150 | 8.8% | 56.4% | 91.1% |
Gold | 2.7% | 15.2% | 50.2% |
Source: Liv-ex.com at 31.03.2023
Our view on wine investment in 2023
2023 is proving to be a challenging year for investors. High inflation is stickier than expected and volatility is still a huge issue. Markets had to tackle Covid in Q1 2021, the commencement of Ukraine in Q1 2022 and, in 2023, the catalyst for volatility has been the impact of inflation on financial markets, exposing vulnerability in the banking sector.
Growth is also a challenge for 2023, with the UK economy now predicted to be the worst performing of the G20 this year by the IMF in early April. The UK Government is grappling with widespread unrest in the public sector with the junior doctors the latest group to take strike action. With this back-drop investors need to consider how they manage risk and optimise portfolio returns.
Wine investments are still delivering stability and tax efficient returns, where other assets are likely to remain volatile and unpredictable. Price correction in the market, and in Champagne in particular since Q4 2022, means there are some discounted wines in the market offering value in Q2 2023.
The Vin-X team are dedicated to helping every investor understand fine wine as an alternative asset they can include in their portfolio planning. For more data and market information see our Q1 2023 Market Report.
Contact us now for more information on 0203 384 2262 or enquiries@vin-x.com