Fine wine investors toast Kwarteng as sterling crash boosts market
Fine wine investors have been toasting the tumbling pound in the past weeks as they capitalise on depressed sterling prices to snap up premium tipples at cut prices.
The Liv-ex Fine Wine 100, which tracks the 100 most valuable wines on the market, rose 1.9 per cent last month, closing September at 424.35.
The benchmark index has dipped just once this year in July as investors look to wine as an inflationary hedge amid extreme turbulence on equity markets.
Analysts at Liv-ex said that currency volatility in the wake of the Chancellor’s tax-cutting budget had allowed dollar-buyers to pile into the market.
“Although [sterling] managed to close the month at $1.12 this still represented a 3.7 per cent decline over the month, taking the market lower still for USD buyers,” they said in a note today.
Wines across Europe have been delivered a boost by the volatility, with Château Figeac from St-Emilion in France surging fastest.