Asset bubbles? Champagne surpasses Big Tech and bitcoin in 2021


Online platforms that allow the exchange of vintages of desired wines, champagnes and spirits, much like stocks or currencies, experienced record activity and dazzling price movements this year.

Data from LiveTrade, which manages the “Bordeaux Index” of drinks, shows that champagne accounted for 15 of the 20 biggest price increases on the platform in 2021.

The charge was led by the 2002 vintage of Salon le Mesnil, described by its producer as “captivating like a samuran sword”. Its value has jumped over 80% in 2021, both on LiveTrade and another wine platform, Liv-ex, and it currently sells for around 11,700 pounds a bottle ($ 15,700).

This rise is greater than the 75% increase in bitcoin and nearly five times the 18% increase in the NYFANG + TM index (Facebook, Amazon, Netflix, Google, Tesla and Microsoft), which has fueled the surge in global stock markets. lately.

Taittinger’s 2006 Comtes de Champagne also made sparks, as did the 2002 and 1996 Krug vintages, with price increases of over 70%, while the Krug 2000, the Bollinger La Grande Anne 2007, the Cristal Ros 2008 and the Dom Prignon P2 2002 saw increases of 54% 55%.

LiveTrade CEO Matthew O’Connell said several factors fueled a boom in the fine wine trade this year – “low interest rates and high levels of savings accumulated by the rich during the many lockdowns. global markets, growing interest in durable goods in the face of growing inflationary pressures “.

At the start of the year, champagne benefited from an exemption from US tariffs of 25% imposed on European wines by the US administration of Donald Trump, which was then suspended shortly after Joe Biden came to power.

Cristal’s 2012 and 2013 champagnes were the most changed bottles of the year overall, LiveTrade reported, followed by the leading wine, the 2014 Lafite Rothschild 6,450 bottles.

The excellent results of the Bordeaux brand were achieved thanks to the normally less coveted “off” vintages, namely 2011, 2012, 2014 and 2017, all of which saw sales growth of over 25%.

A record 220,000 bottles were traded this year on LiveTrade, an average price of around 230 pounds ($ 308.50) per bottle. A tenth of all exchange bottles saw their price increase by over 30%.

The Champagne 50 index was the best performing sub-index of the Liv-ex Fine Wine 1000, rising 33.8% since the start of the year.

($ 1 = 0.7455 pounds)



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