With Christmas around the corner and nativity plays sweeping the nation, today’s blog takes a look at the performance of fine wine compared to gold in 2018. As the chart below shows, fine wine, as represented by the industry benchmark – the Liv-ex 100, has been very stable in the past year.
Both fine wine and Gold have long been considered safe havens due to their tangibility, and therefore lower volatility, against other mainstream assets. This year, the Liv-ex 100 traded within a narrow 2% range, making it even more stable than Gold.
Liv-ex Fine Wine 100 vs Gold (year-to-date)
However, there is another explanation for fine wine’s stability, aside from tangibility. The Liv-ex 100, denominated in Sterling, can play hostage to the gyrations of the currency markets. The pound’s relatively stable performance against the euro in 2018 has been reflected in the benchmark index.
Liv-ex 100 month-on-month movements
Looking for more?
Earlier this week we released our annual list of the most powerful brands in the fine wine market. To read the full report, click here.