By
CultX Team
2021 was a good year for Fine Wine. The market gained 19.08%* and posted positive returns each month. This strong performance led some investors to fear that momentum would wane in 2022.
However, these concerns have proven unfounded and the market is demonstrating the resilience to macro-economic factors that attracts many of its proponents as an investment asset.
As of the end of Q1 2022, excluding commodities, the Fine Wine market has outperformed most major markets, including the FTSE100 and Dow Jones. Burgundy and Champagne continue to shine, with Louis Roederer, Cristal 2008 topping the trading charts by value.
The unique situation within which global markets have operated since the pandemic struck in 2020 makes predicting how any asset class will perform difficult. But, as we head towards the end of Q2 2022 and the mood across almost every global market is dark, Fine Wine has remained relatively immune with continued solid performance.
Wine’s position as both a diminishing asset, and one where capital appreciation comes over a long period of time as bottles age to maturity, means that price volatility is very low. The resulting resistance to macro-economic fluctuations, gives Fine Wine a serious advantage over both mainstream financial products and most other alternative investment asset classes.
The question many investors are now asking is where the opportunities lie for the remainder of 2022, what are the upcoming wine investment trends and which are the best wines to buy for investment.
When deciding which wines to invest in, you’ll want to consider both your own goals for returns and the way each region’s unique offerings could help you achieve those.
Whether you’re drawn to legendary Old World wines from areas like Bordeaux and Burgundy, or the rising stars of the New World coming out of territories like the Maipo Valley in Chile or South Africa’s emerging wine region, Elim, there’s an option that will meet your personal criteria for risk and reward.
To help you decide, we’ve provided key details, and noted a few of our top wine investment picks for each region below:
Our top picks:
Our top picks:
Our top picks:
And Grower Champagne producers to watch:
Our picks for producers:
Our picks:
Our picks:
When asking yourself what is the best wine to invest in, there are several criteria to take into account.
Your budget: Consider your needs and choose the bottles with the greatest potential for the returns you want.
Storage & cellaring: How will you store your wine over the long term? Proper wine storage and location influence quality and hence value and ease of sale. At Cult Wines, we store all wine in our own state-of-the-art London City Bond warehouse, which is one of the biggest wine hubs in the world.
Producer renown: Bottles from well-regarded producers with proven track records of quality vintages are always in demand. With dedicated audiences, these wines are generally easier to sell on – and for greater returns.
A global outlook: Diversify with a mix of established regions, like Bordeaux or Burgundy, and emerging areas, like Italy or Argentina. Choose an array of styles and varietals for a well-rounded portfolio that’ll see different benefits both long- and short-term.
The best investment bottles can be yours when you register for CultX. Source bottles from around the world with 24/7 access to an exclusive network of collectors, and get all the performance data you need to decide when to buy and sell.
CultX offers wine investment like never before. You have full control over your portfolio. Discover the alternative to alternative investing. Download the CultX app today.
**Past performance is not indicative of future success; the performance was calculated in GBP and will vary in other currencies. Any investment involves risk of partial or full loss of capital. The Cult Wine Investment Performance is a hypothetical tool. The results depicted here are not based on actual trading and do not account for the annual management fees that may be charged to a Cult Wines customer which ranges from 2.95% to 2.25% depending on the size of the portfolio, and there is no guarantee of similar performance with an investor’s particular portfolio.
1From January to June of 2022, the Liv-ex Burgundy 150* achieved returns of 23.90%. And in Q2 alone, the index saw 8.09% returns.
https://www.wineinvestment.com/learn/reports/fine-wine-investment-outlook-2022/
2https://www.wineinvestment.com/learn/reports/bordeaux-en-primeur-2021-report/
3https://www.wineinvestment.com/learn/reports/burgundy-report-2020/
4https://www.wineinvestment.com/learn/reports/champagne-investment-report2021/
5https://www.wineinvestment.com/learn/reports/rhone-investment-report-2021/
6https://www.wineinvestment.com/learn/reports/italy-investment-report-2021/
7https://www.wineinvestment.com/learn/reports/emerging-markets-and-us-report-2021/
*https://www.liv-ex.com/news-insights/indices/
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