Fine wine picking up as an alternative investment choice

After falling slightly in price over the past six months, wine seems to once again be rising as an attractive alternative investment opportunity.

The Liv-ex Fine Wine 100 Index, which is a benchmark of the prices of the 100 most sought-after fine wines, posted its first monthly rise since the summer last month.

The index, which is dominated by Bordeaux wines, rose by 3.97 points (1.39 per cent) to reach 290.30.

Wines from Burgundy, the Rhone, Champagne and Italy are also well-represented on the list, which is designed to give each a weighting based on its standing in the overall wine market.

During the second half of 2011, the index fell as a result of declining demand for top-end Bordeaux, and first growth vintages in particular.

In the six months to December 31st, the Liv-ex Fine Wine 100 was down by 20 per cent, but the new year appears to have brought with it a certain degree of stabilisation in terms of prices.

The Liv-ex Fine Wine 50 was also up by 1.9 per cent month-on-month in January and currently enjoys a five-year growth rate of 105.92 per cent, highlighting the relative strength of top-end wines as an investment option.

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