Fine wine outperforms gold since early 90s

Following last week’s news that fine wine has outperformed a range of alternative assets such as classic cars and art since the start of the noughties, The Wine Investment Fund brings analysis to show that fine wine prices have risen more than ten-fold since 1993.

This, the fund points out, is particularly significant when compared to the price of gold, which has only doubled in price over the same period.

Since 1993, when reliable monthly records began for fine wine, prices for the world’s leading labels have risen 974%, giving an annual return of 15% (according to the Liv-ex Fine Wine Investables Index).

In contrast, gold has risen by 218% – an annual rate of 7%, using gold prices from www.kitco.com

“Even with the recent surge in the price of gold to around $1,170 an ounce, wine has shown greater long-term price appreciation than gold, with lower levels of risk,” commented Andrew della Casa, director of The Wine Investment Fund.

“The allure of gold will no doubt remain strong, but fine wine could continue to deliver equally good if not superior returns in the future,” he added.

Patrick Schmitt, 03.12.09