According to Knight Frank’s latest Luxury Index (KFLII), wine has finally overtaken collectable cars as the most popular luxury investment for the world’s super-rich.
The value of the Knight Frank Fine Wine Icons Index rose by a 24% in the 12 months to the end of March 2017, while the HAGI Top Index, which tracks the performance of the world’s most collectable cars, managed a relatively modest rise of just 6% over the same time.
Resurgent demand for Bordeaux and Burgundy wines, amplified by the decline in the value of the pound, has helped to boost the market, said Nick Martin of Wine Owners, which compiles the wines index for Knight Frank.
“Catastrophic frosts that affected up to 80% of the crop in the best Burgundy vineyards mean there is very little stock of the 2016 vintage,” said Martin.
“A lot of the growth has come on the perception of scarcity, but the most sought-after Burgundies might have hit a peak and it feels a bit toppy to me.”