Source: Knight Frank Luxury Investment Index Q2 2017
According to the latest Knight Frank Luxury Investment Index report, Fine Wine has officially toppled Classic Cars, to become the best performing collectable in the last 12 months. Fine Wine has increased 25% in the previous 12 months, 61% in 5 years and 231% in the last 10 years, ahead of Art, Jewellery, Coins, Watches, Coloured Diamonds, Stamps, Antique Furniture and Chinese Ceramics.
Much of the rapid growth can be attributed to the improved confidence and stability in the Chinese economy. Although buyers from Europe, US and the rest of Asia have contributed, it is the ever-increasing demand from mainland China that is driving up the value. Although there was a drop in prices due to a fall in Chinese demand during 2014 and 2015, their investors are now more sophisticated and savvy than ever before.
Andrew Shirley, who compiled the Knight Frank report, confirmed this sentiment in a CNBC report and said, "After the crisis, the Chinese buyers were buying high-value wines not because they liked them, but because they perceived those wines to be the ones to buy,” he explained, “We saw that bubble pop. Now the Chinese wine buyers are more connoisseurs.”
This demand and appreciation from the Chinese market should whet an investor's appetite, with the possibility of handsome returns without the volatility of some of other collectables.