gibbs

Quote of the Week: Time for Some Bordeaux

by

January 22, 2015

  … it might still sound like a lot of money for one of the best wines in the world to be spending [GBP 500] a bottle but there are enough wealthy people in the world who might just do that… There were far less [buyers] at 1,000 pounds a bottle, less still at 1,500… It’s all about where people perceive value to exist and value would be determined by whether or not they were prepared to pull the cork on a bottle of wine at that level.”

 

Who said it: Justin Gibbs, Liv-ex director and Co-founder

 


In Context:
After last week’s headlines and currency turmoil, a bottle of wine might be just thing, not necessarily to drink, but for investment purposes because the prices of fine wines is robust and volumes are increasing. The fine wine market bottomed out last summer after it became clear that giving super-expensive labels as a gift in China is out of fashion, among other trends, explains Justin Gibbs. Wine prices have dropped to levels where they can attract a wider range of buyers, he says. Gibbs make some amusing comments, for example, pointing out that falling wine prices turn it from a “financial investment back into a pleasure purchase, which curtails the supply coming to market”. Elsewhere, Silicon Valley Bank predicts 15% sales growth for US premium wineries as a result of new sales channels combined with economic recovery and return to growth expected in the US this year. It looks like one way or another, more people will be buying wine in 2015. (Image source: Liv-ex)

 
Where we found it:ThinkAdvisor

Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedIn