Overview: Liv-ex head of decision intelligence, Tom Burchfield, indicates that current market conditions may represent a prime time for purchasing fine wine, subject to specific caveats regarding selection. The analysis draws on real transactional data collected from professional merchants to suggest pricing has returned to 2015 levels in real terms. This assessment will be presented at the upcoming db conference in London’s British Library.
The Full Story
In an interview with The Drinks Business, Burchfield addressed the contentious topic of fine wine pricing on the secondary market. He noted that while the Fine Wine 1000 index is back to 2015 levels, it is not a blanket signal to buy everything in complete confidence. Certain wines are starting to rise in value while others remain falling, requiring a canny buyer to pick up wines that are stable and look like they are going to rise at prices unseen in over a decade. Burchfield specifically cited the Lafite 2016 as an example where purchasing now appears to result in increased value within a couple of years.
What This Means
The market is currently described as being right at the start of recovery, which is being led by the most tried and trusted brands in the most tried and trusted regions. Burchfield advises buyers not to focus on potentially new and upcoming regions, but instead to stick with what they know that is easy to trade and liquid. This data-led outlook suggests that sensible money is going for back vintage Bordeaux, top of the classification Burgundy, and alike during this recovery phase.
Consumer Takeaway
For collectors and investors, the advice centers on liquidity and stability within established regions rather than emerging markets. The release highlights that sticking with known brands in tried and trusted regions offers a safer entry point for those looking to capitalize on the market floor found in February. Buyers are encouraged to focus on back vintage Bordeaux and top classification Burgundy to align with the recovery trajectory identified by Liv-ex data.
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