LIVE opportunities: Fine Wine rises as sterling strengthens
PREMIUM
CONTENT

  • The Fine Wine 50 has been climbing over the same period that Sterling has improved against the US Dollar and Euro.
  • View market action in multiple currencies.

2020 and 2021 have been interesting periods for the financial, currency, and fine wine markets.

Quantitative easing and increased government spending has led to a huge expansion in global money supply. Equity markets have roofed it, but not without increased levels of volatility. Fine wine offers an interesting alternative – an inflation hedge, stable, tangible and delicious – a glass of good wine was often needed as lockdowns were extended again and again.

Fine wine has had a “good” lockdown – since late April 2020, the Liv-ex Fine Wine 50 has been climbing.

Underlying strength?

Seen in the chart above, since a dip in April, Sterling has been quietly strengthening against both the US Dollar and the Euro. Sterling strength can often put the brakes on a market rally as wine becomes more expensive for Euro and Dollar based buyers. The fact that is has not done so, points perhaps to an underlying strength that goes beyond the vagaries of global currency fluctuations.

Did you know that a drop-down list in the top right corner of Liv-ex.com (highlighted red) allows you view the market in a number of different currencies? Once changed this setting will continue to be your default throughout the exchange.

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