The Liv-ex Fine Wine 100 Index – the industry benchmark, which is calculated in Sterling – has risen by 18.4% over the past five years.
Converting the index into Euros and Dollars tells a story about the price developments of fine wine in these currencies. As the chart above shows, fine wine is cheaper in USD now than it was five years ago.
A catalyst for rising prices in Sterling was its weakening following the EU referendum in mid-2016. Almost overnight, dollar buyers saw around a 10% discount on UK-based stock, increasing US and Asia-based buying activity and stimulating the market.
Over a year period, the Liv-ex Fine Wine 100 has risen 1.6%. At the same time, the FTSE 100 equities index has fallen 5.1%, and has seen considerable volatility relative to the Liv-ex 100.