Fine wine prices were on the up in March as the alternative investment class gained traction in the context of global political and financial upheaval, according to WineCap first-quarter summary.
Bordeaux wines have come into focus following consecutive years of subdued price performance.
Wine critics reacted favourably to the Bordeaux 2020 yield, leading to price appreciation on Montrose (14%), Mouton Rothschild (15%), Pavie Macquin (22%) and Carruades de Lafite (40%).
WineCap’s Liv-ex 100 Index has stayed relatively flat compared to the equities markets
At the beginning of the year, the Liv-ex 100 index experienced a decline of 1.4%, indicating a sluggish start for the market.
Nevertheless, the index demonstrated signs of improvement in February by increasing 0.4%. This progress was attributed to notable accomplishments from California, Burgundy, Italy, and Australia.
In March, the index further advanced by 0.2%, with some of the top performers hailing from the 2019 vintage, such as Masseto and Dominus.
Burgundy will come into focus in the second quarter according to WineCap, noting: “The limited release of the 2021s, coupled with ever-rising prices, have restricted the region’s top names to a number of collectors.”
Drought conditions have also put a stranglehold on supply.
“While the quality is expected to be high… it remains to be seen how the new releases will be pitched to look attractive in the context of the critically lauded and physically available 2019s,” read the report.
Domaine Jean Louis Chave, Hermitage, Rouge topped the list with a 58% investment return.
Source: WineCap