Fine Wine Index up 42% in 2007

Have you been priced out of the market for fine wine? The wealth creation in Russia and China is partially responsible, but we will blame it on the hedgies in the City of London, those guys are animals..

The Liv-ex 100 index, an index of the top 100 investable wines (90 per cent weighted to the French wine-producing region of Bordeaux) has risen 42 per cent this year. The index, used by 155 wine wholesalers, is trading at its highest level since its inception in 2000.

Hopefully their holding period is longer than a stock or bond.. Patience is not a part of their vocabulary. Infanticide could be endemic as they drink’em up before their time....pushing prices even higher down the road for top vintages.

Stephen Williams, chief executive of London merchant Antique Wine, said that while traditional wine connoisseurs typically start off drinking less expensive wines and gradually work their way up, “the new money wants to drink the top wine from the very beginning . . . they don’t want to build it up gradually, they suddenly want an entire cellar”.

At this rate we will all be drinking plonk. And soon....

New money’s taste for fine wine cleanses wallets as well as palates
Financial Times

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