Fine wine news

The Wine Investment Fund (TWIF) has predicted that the fine wine market will grow steadily in 2012 and end the year ten per cent above its 2011 level.

Reassuring investors that the long-term prospects of fine wine has proved itself time and again, TWIF believes that falls in trade seen in the second half of last year will only improve.

"Falls such as those in 2011 are extremely rare in the fine wine market and have generally been followed by strong returns for those investing at the right time," Andrew della Casa, director of TWIF, told Bermuda-based The Royal Gazette.

The company predicts that there will be a 50 per cent chance of growth in 2012 of between five and 15 per cent and a 35 per cent chance of growth between 15 per cent and 22 per cent.

Investors have been urged to look at the wider investment market, as while wine trading is largely uncorrelated to other assets, this is not the case in times of extreme financial stress.

If the eurozone continues to remain unstable into this year, this could affect the performance of the fine wine market. A slower growth in the Chinese economy will also likely have an effect.

Posted by Helen Jenkins