Indexes measuring some of the top fine wines to invest in have dropped in value over the second quarter of 2023, a report from WineCap found.
In June, the Liv-ex 100, which tracks the prices of the 100 most sought-after wines on the secondary market, dropped by 2.9% - its largest fall so far this year.
Similarly, the broader Liv-ex 1000 fell by 2.4%, while other region-specific indexes experienced declines.
“The fine wine market faced a downturn in the second quarter, as prices fell across all regions, creating more opportunities for buyers to get their hands on well-priced stock,” said WineCap.
Despite the fall, demand for wine is still strong with trade volume and values increasing during the period.
96% of UK wealth managers expect demand to grow, making it the top ‘passion asset’ ahead of watches, handbags and jewellery.
Fine wine’s tax efficiency, cautious risk profile and strong historical returns continue to be the key driving force pushing interest, WineCap added.
Between April and June, the Liv-ex 100 grew wider apart from traditional investments like stocks and gold as the prospect of falling inflation and an uptick in trading momentum indicated the start of a new bull market.
The wine investment group added: “However, a note of caution prevails, as some market watchers have expressed concerns about worsening economic data and anticipated pressure on earnings.”