Investment in expensive wines has skyrocketed this year thanks to the interest of wealthy investors in safe haven assets, writes Financial Times .
Amid the pandemic in March, the wine market fell by only 1.1 percent. In addition, it remained stable even as the US imposed tariffs on French wines and many tastings were canceled due to the coronavirus. It was the ability of wine to serve as a “refuge” that attracted investors to this market, they decided to invest more money.
The Liv-ex Fine Wine 100 Index of the London International Wine Exchange has increased 4.7 percent this year. The Liv-ex Champagne 50 Index rose 8.3 percent, while the Liv-ex Italy 100 Index rose 6.7 percent. Tom Goering, head of investment company Cult Wines, said that in just four weeks he raised $ 7 million from 80 investors.
Earlier it became known that China will introduce duties on Australian wines. They will be from 107 to 212 percent. Beijing decided to take revenge on the trading partner for the fact that Australia in 2018 did not allow Huawei to install 5G networks. Australian Commerce Secretary Simon Birmingham called the tariffs a devastating blow, as well as “unfair, unjustified and unjustified” measure.