Fine wine outperforms oil and gold

Written by Gemma McKenna

Friday, 03 December 2010

Wine prices jumped by more than 5% last month, outpacing oil and gold, according to fine wine traders. Monthly turnover from fine wine sales has rocketed by more than 200% from 12 months ago, with interest from the Chinese market driving growth. In the year to date wine is still outperforming other key assets classes, climbing 32.35%. Bordeaux wine merchant Gary Boom said: "Chinese buyers in particular have got a taste for fine wine - and with alternative investment classes such as gold and shares limping through to the end of the year, it's hard not to give any other forecast other than for growth to continue well into the New Year." High profile brands Lafite and Mouton Rothschild 2008 enjoyed the most spectacular rises after buyers rushed to secure the wines after confirmation they would feature Chinese artwork/symbols on the new labels. Chateau Margaux also featured strongly for both 2007 and 2008 vintages as wine traders in Asia looked to lock in physical positions in advance of the Chinese New Year festivities next January. Fine wine also outperformed the solid rallies enjoyed by both gold and oil - despite a strong rally in the US dollar, the commodities closed up 2.2% and 3.3% respectively.