Market watch
Figures show collectors have continued to buy up top wines so far in 2020, but some analysts have advised caution on the road ahead. Priorities have naturally shifted this year as the battle to protect lives from Covid-19 led to unprecedented lockdowns that have also hit jobs and national economies.
At the time of writing, however, this situation hadn’t significantly affected longer-term trends on the fine wine market. ‘Prices for fine wine were relatively stable when viewed against mainstream financial assets,’ said Liv-ex in April, although it reported an ongoing drift for top Bordeaux and Burgundy.
Italy has been a bright spot, and Liv-ex said the 2013 vintage of
Giacomo Conterno’s revered Monfortino Barolo Riserva (above right) was the most traded wine by value on its platform in the first quarter of 2020. It also reported stronger trading for Bordeaux 2010 wines, following their reappraisal by critics, including Decanter’s Jane Anson (see ‘10 years on’, p40). UK-based merchant BI Wines & Spirits agreed that fine wine trading has proved resilient, but it was more upbeat on high-end Burgundy. It reported strong demand for names such as Domaine de la Romanée-Conti and Rousseau (pictured left).
BI said Asia-based buyers returned to the market in March, adding: ‘Buyers in the region have also benefited from a stronger US dollar, which has helped to drive volume buying.’
Miles Davis, head of professional portfolio management at the Wine Owners exchange, urged caution amid gloomy economic forecasts. He highlighted Piedmont’s highly rated 2016 crop as an option for buyers (see ‘Market Watch’ in Decanter’s May issue).
In an outlook report for the rest of 2020, Davis said: ‘I would that predict mainline prices, ie liquid Bordeaux and expensive Burgundy, will be up against it. There will be lots of opportunities, however, and I do not expect a sudden crash, as we would have seen that by now.’
One of the most highly traded wines on
Liv-ex by value in Q1 2020, but its price was down by 12% versus a year ago, although up by around 13% over five years.