Illustration 1: Liv-EX Fine Wine 50 Index … market has bottomed!
Because of QE and the great amount of liquidity that has been sloshing around the world, many financial assets from bonds to stocks and also hard assets like property, farm land, commodities and also fine wines have all been ramped higher at different points in time over the last five years since 2008.
One of the more interesting market had been in fine wines where the exuberant Chinese had driven Bordeaux and then Burgundies to sky high prices. The former had corrected significantly since 2011 and a significant bottom could be in place.
The 2008 vintage of Saint-Emilion wine producer Chateau Angelus climbed to a record high of 1,800 pounds ($2,730) a case on the London-based Liv-ex wine market in late February 2013, according to data on its Cellar Watch website.
The price was 15 percent up from a transaction January 2013 and 61 percent above a trade conducted last August 2012, according to Cellar Watch data. It was also higher than the HK$19,600 (1,570 pounds at the time) paid for each of two cases in a Sotheby’s (BID) sale in Hong Kong in October 2012, according to Sotheby’s online auction data. Angelus was promoted to the ranks of one of the four top growers in the appellation in September 2012. http://www.bloomberg.com/news/2013-02-26/chateau-angelus-2008-saint-emilion-rises-to-liv-ex-record-2-730.html
Asianmacro is pretty happy as he had previously bought Angelus 2008 en primeur during the midst of the global financial crisis. (*2008 will always be a lucky year for the Chinese and Angelus in Mandarin/Chinese is 金钟 aka ”Golden Bell” … pretty auspicious for the Chinese tycoons!). Will be looking to make some room in my cellar for other acquisitions shortly and anybody that wishes to get a case or two from me will be welcomed to send me a private message. The current price is even higher by another 6% from February last month http://www.farrvintners.com/wine.php?wine=81 but will be available from me at previous auction price of GBP1,800 per case still …. let’s drink to that !
*Asianmacro is a beach bum managing his own wealth. Besides deciding what to have for lunch (or hitting the gym sometimes), he is mostly found listening to loud music while trading and investing for himself. While every care has been taken in preparing the information in and/or materials, such information and materials are provided “as is” without warranty of any kind, either express or implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials. The opinions expressed do not constitute investment advice and independent advice should be sought where appropriate. In no event will Asianmacro be liable to you for any direct or indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials attached herewith. Asianmacro may already have or intend to have a trading or investment position in the financial instruments or products referred to in this communication. This is not intended as an offer or solicitation for the purchase or sale of any financial instrument and Asianmacro may also have interests different from or adverse to your interests.