The yield of fine wines exceeds real estate and bets are placed on wine futures
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Data shows that the yield of fine wines has significantly outpaced real estate price growth in recent years. In addition, the purchase of wine futures, i.e. the purchase of fine wine in barrels, is gaining popularity. Wine in this form can only be purchased at auction.
Since in Europe the fine wine market has been London centered for decades, we will also compare real estate prices in the UK. In 2021, the increase in real estate prices in Great Britain was 9.7 percent. (Source: Halifax UK). At the same time, the Liv-ex Fine Wine 1000 wine index rose 23.5 percent, according to Liv-ex, London's international trading platform for fine wines. The index includes 1000 fine wines from different regions of the world.
In the case of prices, we must also talk about inflation. Many countries have seen the fastest growth in consumer prices in the last year since the global financial crisis a decade ago. In October 2021, US consumer prices rose by 6.2% per year, the highest level in 31 years. In European countries and China, consumer prices are also rising due to increasing energy prices and supply chain disruptions caused by the pandemic. However, today's situation is favorable for the wine investor. For example, investment in Burgundy wines grew by an average of 6.4% in January. (Source: Liv-ex.com)
In recent years, investment in fine wines has also reached Northern and Eastern Europe through the international wine investment platform WineFortune, which operates from Estonia. The company has now also launched a unique wine barrel auction campaign. It is also called the purchase of wine futures from Burgundy, the region with the highest demand for investment wines.
When purchasing wine futures, the customer can reserve their share of the wine barrel to be bought at the Burgundy auction, and if the transaction is successful, they will physically receive these wine bottles in their portfolio after 2 years. If the barrel could not be obtained from the auction at the planned price, the money will be refunded on the basis of the contract. There is also no need to worry about storage and the period while the wine is still in the barrel. To this end, WineFortune has a partner, Domaine Faiveley, one of Burgundy's most famous wine producers. The producer takes care of the development in the barrel, bottles the wines and then sends the bottles to an excise warehouse in Estonia.
Simply put, it is a crowdfunding campaign to invest in fine wine. More information is available under auctions section on our website.
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