War Russia Ukraine, the super rich are betting on fine wine as a primary investment asset
According to the authoritative Knight Frank Luxury Investment Index in fact, the “fine wine”Recorded the highest growth among investments in luxury in 2021 with a + 16%which even becomes + 137% if the last 10 years are taken into consideration, as underlined by a recent study by Spear’s Magazine.
Despite the pandemic, the difficulties of the supply chain and the tragic facts concerning the current conflict, the wine market is proving to be very solid: the Liv-ex 100 index, which measures the trend of the fine wine market, in 2021 it experienced a boom with a + 23% and also in 2022 it opened up with a + 1.8% for the month of January.
A increase driven by the consumption of fine labels within Italian catering establishments: Istat data describe a growth in 2021 of 22.3% in sales of food & wine within the channels of Italian catering and 35% of consumers expect one growth in spending for the purchase of high-end bottles in restaurants by 2022according to the Nominisma – Wine Monitor research commissioned by the Grandi Marchi Institute.
The fine wines sector it also has great potential for new generations: according to the famous Luxury Market Report Christie’s auction house recently reported by the Financial Times, 24% of sales involving fine wines and spirits were purchased by Millennials.
In Italy, however, according to a recent research promoted by Intesa Sanpaolo Private Banking entitled “Collectors and Value of Art in Italy”, the fine wine is only collected by 1% of respondents against 21% of painting and painting enthusiasts, followed by 17% for photographs and 16% for sculptures and works on paper, thus highlighting a strong margin of growth in our country compared to world estimates.
There are several reasons behind this real boom: first of all, wine has a low correlation with more traditional economic markets, a condition that makes this good more resistant to current problems related to the ongoing conflict such as increased inflation. Furthermore, the market has a necessarily limited supply of fine bottles: many of them are in fact opened and consumed, the supply is reduced and, consequently, the price of the bottles left on the market rises.
“Investing in fine wine it allows us to have a much broader point of view than traditional investments in safe-haven assets such as gold, watches and diamonds – analyzes Luigi Sangermanoluxury entrepreneur and CEO of Laurent-Perrier Italia, a prestigious French champagne production and marketing maison – Investing in high-end labels that can be consumed by collectors makes the market much safertherefore less volatile and with double-digit yield capacity in the long term: the terrible ongoing conflict, paradoxically, will not create particular problems for this sector, on the contrary.
In the next few years there will be one speculative bubble which will make the prices of classic safe-haven assets fall again – concludes Sangermano – by burning capital and drastically reducing the number of operations on the market. The fine wine, on the contrary, will continue his growth pathperhaps slowing down, but in any case without ever stopping the exchange and growth of value “.
The index found by the Knight Frank Luxury Investment has highlighted how in 2021 investments have grown overall by 9%: in this specialand ranking the fine wine is on an equal footing with collector watches (still + 16%), followed by works of art (+ 13%), ancient coins and fine whiskey which recorded an increase of 9%.
Attention, however, to future developments always relating to the “fine wine“: The first ones are appearing on the market limited editions of bottles where the NFT (Non-Fungible Token) represents the wine label and is made by digital artists. In addition to guaranteeing the authenticity of the bottle, it will be possible to easily resell the purchased object by exchanging the NFT, because the blockchain’s tracking system records each transaction and automatically updates the digital ownership certificate of the bottle. It is a market still in an embryonic stage, but several wineries are already starting to move with ad hoc innovative initiatives.
“Ukraine, Perrino:” Putin must be thrown out, forcing him to negotiate ”
“Government, Draghi risks arms in Kiev. Earthquake in the Senate. Crisis hypothesis
Ukraine, “Berlusconi is working behind the scenes for peace”. The revelation
Fiscal delegation stalled, on the flat tax the government risks being torn apart
China plane crash, the Boeing 737 mystery: suicide hypothesis takes shape
Autism, one case out of 50. “But the institutions remember it once a year”
Di Battista against Della Vedova: gaffe and clash at “Di Martedì”. VIDEO
Railways, national contract signed: average increase of 110 euros
SEA, two expeditions to Romania to help Ukrainian refugees
Rockwool Italia, in Rome a meeting on the fire safety of buildings
#Fine #wine #risk #crisis #1st #asset #super #rich #growth