The report today suggests that sectors of the market have been oversold, providing some of the best buying opportunities wine collectors and investors have seen in several years
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The report today suggests that sectors of the market have been oversold, providing some of the best buying opportunities wine collectors and investors have seen in several years
By the end of 2011, there will be more than 590,000 people in China with disposable assets of at least 10 million yuan and total assets of 18 trillion yuan, according to a recent study.
If only 0.5 percent of the wealth goes to wine investment, the market will reach 90 billion yuan, far exceeding the annual sales of French Bordeaux wine, which is estimated to be around 30 to 40 billion yuan, Wang said.
The Dinghong Fund (Dinghong means ‘In Red’) plans to invest in €110m on wine over a five-year period starting this year
Last month, former Moore Capital Management economist Joe Roseman called for investors to add some “SWAG” to their portfolios (silver, wine, art and gold).
Jamie Ritchie, the head of Sotheby’s Asian wine sales, said he is keeping his fingers crossed that the auction house will achieve another sell-out auction in Hong Kong, where it hasn’t had an unsold bottle in its last 15 sales.
fine wine has exhibited a very strong asset performance over the last decade. The Liv-Ex fine wine index is up almost 300%.
As in so much of the luxury market in Hong Kong, the expansion is being driven by money from across the border in mainland China, where decades of strong economic growth has created a new breed of wine investor. Although some collectors still tell horrified tales of mainland Chinese collectors dumping £46,000 bottles of Chateau d’Yquem into punch at parties, there are just as many stories about canny Chinese investors becoming better at understanding the vintage wine market.
A 200-year-old bottle of Château d’Yquem has broken the record for the most expensive bottle of white wine ever sold, after a collector bought it for £75,000 at the Ritz in London.
Wine collectors, particularly from Hong Kong, bought more than $200 million worth of fine wines at auction in the first half of 2011, nearly doubling the amount for the same period last year.