The anticipation of the second and third wave of coronavirus has led to commodity trades in the Asian markets soaring as people are franticly panic buying due to fear of future chaos as seen before with the toilet rolls.
Amid the panic, investors are desperately holding onto stocks and keeping their fingers crossed. However, there is a ray of hope that many investors are resorting to; the Fine Wine market, which is seen as a safe haven for weary eyed investors. Warren Buffet himself boasts of the huge profits to be made in wine, which has a low correlation to the stock market making it one of the most stable investments possible even in times of worldwide economic. Wine is not just a tangible asset but can provide investors with security in the toughest of economic times.
Based on the past performance over the last 50 years what we have seen is if you invested US$100 in Bordeaux fine wine in 1952 fast forward till the year 2021 it would bring you a whopping $420,000. On the other hand, $100 in the stock market, on an average blue chip stock, would bring you a mere $100,000. This statistic alone is enough to show why many advisors around the world advocate investment in fine wine as a great opportunity for diversifying client portfolio.
Investors are transferring their savings from bank-based investments to wine fields, in a bid to invest money securely amid the fear caused by the pandemic.
Bordeaux wines are the most popular, being sold in online auctions to keen buyers and many first time investors in the world of fine wines. The most desirable fine wines that are getting snapped up are Petrus, Mouton Rothschild, Domaine de la Romanee-Conti and from Burgundy; Ponsot Assortment, all of which are achieving above the asking price at auctions around the world. This shows us good analysis for the future to come and presenting its reputation as a serious contender in the commodities market.