Vin-X Wine Investment, a specialist fine wine investment broker, last week released a report on the investment returns of fine wine as compared with those of the three traditional asset types, namely stocks, property and gold.
Based on the Liv-Ex Investables Index, the oldest running wine gauge, fine wine has appreciated 1,474 percent since 1988, the report said. This compares with 783 percent for the second-best performing index, the Dow Jones Industrial 30, which measures the stocks of the 30 biggest US-based companies. S&P 500, one of the broadest measurements of the US stock market, has appreciated 744 percent over the same period, while the FTSE 100, the UK blue-chip index, has gained 306 percent.
Gold has added only 160 percent, while property, as measured by the Nationwide/Halifax house price index, has gained 312 percent.
Exploring the market over the shorter term, Vin-X again found wine to be vastly superior to the traditional assets. Examining distinct 5-year holding periods (Vin-X’ recommended holding period for a wine asset) the report found that, on average, fine wine appreciates by 103 percent every half-decade. This compares with 55 percent for the Dow 30 as the second-best index.
The worst 5-year period for wine saw the Liv-Ex Investables Index drop 10 percent, while the worst 10-year period was a gain of 80 percent, which compares with a seven-percent gain for gold, as the second-best performer in that category.
“We can see clearly that wine has, by a long way, been the best overall performer, showing almost double the growth of the next [best asset class],” said Martin Pruszynski, head of procurement at Vin-X and author of the report.
“It’s reassuring to know that even if we look at a period of particularly poor performance, wine stands tall.”