Posted by Gemma McKenna on 10 November 2014 |

Four years of falling prices have brought the Bordeaux market to its “lowest ebb since the early 1970s”, meaning now is an opportune time to enter the market, according to Liv-ex managing director James Miles.

Speaking at the wine industry conference at the Hong Kong International Wine and Spirits Fair, Miles said evidence points to “a reasonably reliable boom and bust every 10 years or so”, but despite Bordeaux’s turbulent history “fine wine has returned 4.1% in real terms between 1900-2012, putting it ahead of art, stamps and bonds, and only narrowly behind equities”.
Miles also noted that 25% of high net worth individuals have a wine collection which accounts for 2% of their wealth.

With the Liv-ex 100 Index finally on the rise over the past three months, Miles pointed to a number of factors indicating that now is an opportune time to invest in Bordeaux.
Firstly, two and five year returns are at their lowest in 25 years, with Bordeaux and First Growths at their lowest in a decade. Secondly, fine wine has “dramatically underperformed” against other assets, suggesting it “may be of good value”, and thirdly, Hong Kong import numbers are up 8%.
He added: “After four tough years, value is returning to Bordeaux.”