Bordeaux wine is now a better investment than a Hermès bag
And better than a Rolex watch and a classic car, too
People are always looking for investment opportunities and since banks aren’t exactly doing a stellar job, many prefer to invest in tangible, physical things such as wristwatches, classic cars, wine bottles and, as it turns out, Hermès handbags. And that’s the big news today: fine wine has actually surpassed Hermès handbags (including Birkin handbags) as the best-performing luxury investment, according to new data.
Knight Frank, an investment consultancy, has conducted a survey regarding luxury investments for the year 2020 and Bordeaux wines - especially wines produced between 1996 and 2000 - have outperformed Rolex watches, Cartier watches, Hermès handbags and vintage cars. How did they find out? Well, the average price of investment grade wines rose by 13% in 2020, while the average price of a Hèrmes bag dropped by 3%. Meanwhile, luxury watches have ’only’ gained 5% across the board while classic cars appreciated by 4%.
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Andrew Shirley, editor of Luxury Investment Index at Knight Frank, said: “Two assets that have been at the helm in recent years – rare bottles of Scotch and Hermès handbags – have relinquished their places at the top of the index.”
According to Nick Martin of Wine Owners (he helped compile the data for Knight Frank), wine is likely continue to grow because it is “not going crazy but growing nicely. There are no signs of over exuberance.”
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Comments (6)
No!
I have never heard of either
I've never considered wine as an investment, but I would never consider buying a Hermès handbag, either. Anything I spend money on has to be useful! 😂
Based on a sample size of one, Bordeaux is overrated
Not quite. although, we do prefer Burgundy, there are some outstanding Bordeaux we enjoy. White Bordeaux are quite outstanding, particularly dry Sauternes, like "Y" from Chateau d'Yquem . Also, white wines of great red wine chateaus,...
Read moreNoted! I love a white wine
No, we never will. Our whole family loves wine. We do have some rare and old wine in our cellar, but it's for family and close friends to enjoy it!