Wine named world's 'best-performing collectible'
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Fine wine has been named the world's best-performing collectible, as values rise by 25 per cent in the past year, according to a new report.
The Knight Frank Luxury Investment Index has revealed that fine wine has now replaced classic cars as top collectible around for wealthy investors around the world, with prices for the past five years up by an impressive 61 per cent.
The jump, which has been fuelled by particular success within the Bordeaux, Burgundy and northern Italian wine markets, follows a large fluctuation in the market caused by the effect of the financial crisis on the Chinese market.
However, as buying picks up, Chinese investors are now back to snapping up fine wines and even vineyards, with more than 100 châteaux in France's Bordeaux region being sold to eager Chinese enthusiasts.
The strength of the market is also reportedly being driven by the strength of the economies across the US, Europe and Asia, but Chinese buyers continue to be the biggest experts in the newly excelling field.
Commenting on their enthusiasm, Andrew Shirley, who compiled the report on behalf of Knight Frank, said: "After the crisis, the Chinese buyers were buying high-value wines not because they liked them, but because they perceived those wines to be the ones to buy."
The report also cited the results of Sotheby's global wine auction in 2016, which saw total sales grow of 22 per cent compared to 2015. Specifically, the auction hosted the sale of wines from the William Koch cellar, which achieved $22 million. Meanwhile, a 10-bottle auction of 1945 Château Mouton Rothschild was sold for $343,000, beating its estimate of $120,000.
However, these results have had a significant impact on the success of the car industry, the Knight Frank report added. In fact, it was revealed that classic car prices grew by only two per cent over the past 12 months, falling to sixth place in the global rankings of the world's most popular and successful collectibles.
Meanwhile, the art market was ranked in second place after wine following a yearly growth total of seven per cent. However, Mr Shirley has added that the promise of a number of important works of art coming up for auction towards the end of the year, this consistently growing industry could still end 2017 in top position.
"Art buyers have become more selective," Mr Shirley added. "But I wouldn't be surprised to see art end the year on top."
Global chief executive Matthew Girling has also suggested that jewellery could make it to the top spot if it has a positive year end, following the publishing of a five-year growth figure of 49 per cent and a ten-year figure of 142 per cent.
Mr Girling said: "Our own experience at Bonhams certainly bears out the report’s conclusions with wine, art, watches and jewellery all performing strongly over the past year."