Fine wine prices up over 12% in two decades

Fine wine prices have increased almost 13% over the last 20 years according to new research by Liv-ex.

The just-launched Liv-ex Fine Wine Investables Index has recorded an average annual compound growth of 12.6% since 1988, proving that fine wine has a long term record of producing impressive returns.

The new index provides a particularly intriguing insight into 20 years of fine wine price movements, highlighting historic peaks and troughs in the market.

Interestingly, it shows that the rapid fine wine price appreciation witnessed from 2005 to summertime last year is not without precedent. While prices rose 141% in the 36-month window from June 2005 to June 2008, a 42-month period until October 1997 saw prices climb almost 300%.  

“The launch of this new index – the most comprehensive ever produced – allows detailed analysis of long-term price trends for the first time and proves that fine wine has a 20-year record of generating strong returns,” commented James Miles, director, Liv-ex.

“This data adds to the growing evidence that fine wine is a useful tool for portfolio diversification,” he added. 

For more information on the index, including fluctuations over the full 20-year period, see the Fine Wine Monitor in August’s copy of the drinks business.

For more information on how the index is calculated visit www.liv-ex.com.

Patrick Schmitt, 09.07.2009