Originally published October 2021.

Fine wine markets remain a source of stability in an uncertain world. The Liv-ex 1000, the broadest measure of the fine wine market, delivered a 2.41% quarterly return to start 2021, continuing its steady growth since last May.  The rollout of Covid-19 vaccines programmes and plans to reopen hospitality sectors formed the main drivers, fuelling optimism of a sustained economic recovery over the course of the year.

Most major financial markets have also posted impressive return figures since the initial downturns, when the pandemic shocked the world early last year. However, fine wine is noteworthy for its broad-based consistency, with three straight months of price appreciation to start 2021 and every sub-region of the index enjoying favourable quarterly returns.

The below chart, showing financial market returns compared to those of fine wine, illustrates how fine wine saw a relatively shallow dip in early 2020 and has since posted consistent growth. Some major equity market returns have been higher, boosted by global stimulus programmes, but fine wine has seen much lower volatility.