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Fine Wine Market Report: August 2019 Market Decode

The JF Tobias August Market Decode has been released, containing all the latest JF Tobias insight and analysis on fine wine market performance. It remains the best independent analysis, and helps our clients to stay up to date with what is happening in the fine wine market, and understand fine wine market performance.

  • 14% increase in people looking to sell fine wine, against last month
  • Enquiries to sell totaling: £2,076,619 submitted to JF Tobias in the past month
  • HK sale share recedes by 17%, US by 19%
  • Sterling remains significantly weak

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August Market Decode

Sterling remains significantly weak

Following the election of Boris Jonson, Sterling has depreciated significantly as investors increase their expectations of a no-deal, and increased political uncertainty. The perceived increase in these risks, alongside fears of a global economic recession, are worrying signs for fine wine.

Despite Sterling’s unprecedented weakness giving the market a broad boost, which saw prices stabilise somewhat, there is a feeling that this does not tell the whole story.

That the market has only made such small gains on the tailwind of this weakness is of concern, raising direct questions as to both demand and appetite from China.

Severe escalation in trade war

HK reported further weakened demand from China, led largely by Beijing allowing its currency to weaken past the psychologically important point of 7 RMB to the Dollar for the first time in over a decade, in response to Trump imposing an additional 10% tariff on the remaining $300 billion worth of Chinese imports.

This marks a dangerous escalation of the Sino-US trade war, with Trump’s Treasury Department formally labelling China a currency manipulator, as Chinese enterprises stopped making new purchases of American farm goods. For the fine wine market, in real terms, this is worrying.

A weaker currency can make goods cheaper to sell abroad, allowing businesses and consumers to help offset the additional tariffs, but it all has a knock on effect for imports, as purchasing power weakens, lessening both demand and appetite.



Access the Full Report:

August Market Decode

At JF Tobias, we pride ourselves on being the best independent port of call in the fine wine market. If you have any questions about the market report, or would like to talk to someone regarding it, please contact us, and a member of the team will be delighted to assist.

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