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.
- 4% increase in people looking to sell fine wine, against last month
- Enquiries to sell totalling: £3,146,127 submitted to JF Tobias in the past month
- UK sale share increases by 4%, HK increases by 3%
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Bordeaux shows signs of recovery
Typically, August is a sleepy month for the wine world, with European merchants shutting up shop and heading to the beach. However, in keeping with 2020 so far, this August was an altogether different affair. The wine world had lost ground to make up and as such the trade were at their desks and busy.
June and July this year saw a stagnant wine market, with participants choosing to sit on their hands, not daring to risk the possibility that the market had not quite reached “the bottom”. A combination of the threat of further COVID headlines and some residual scar tissue from 9 months of continual losses ensured trade volumes across the globe caveated at low levels.
To hold or sell: Fear Vs. Greed
The wine market may have a glossy consumable product at its core, but it should not be forgotten that it operates in much the same way as any other money market, albeit a little slower. Subsequently wine prices, just like that of oil or FX rates, perfectly encapsulate and interpret human sentiment. Therefore, just like any other asset class, the drivers can be distilled down to two emotions, Fear and Greed.
It does not take a wealth of experience to infer that at the moment the predominant theme in the wine market is one of Fear. The effect of months and months of losses have left a market raw and a little reluctant to reengage. As a result, it is not the effect of Fear but Greed that we want to look at this month, both in reference to portfolio preservation and creation.
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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.
