The JF Tobias January 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.
- 5% increase in people looking to sell fine wine, against last month
- Enquiries to sell totalling £1,607,868 submitted to JF Tobias in the past month
- Asian sales recede by 23%, USA sales increase by 20%
- Apple’s profit warning over poor China sales fuels fears of weakening demand for luxury goods in China and HK
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Global Market Volatility Continues
Evidenced over Christmas, Apple’s China sales warning sparked a flash crash on the 24th, only for markets to stage a miraculous recovery on the 26th. That it was a warning over Chinese sales which saw Apple shares tumble 8% is of particular concern to the fine wine market.
With wine a luxury good, Apple’s warning can be taken as a stern warning over demand in HK and China, and one that will further test price’s robustness.
This is worrying investors, who have reacted quickly to these developments, and who are looking to reduce over-exposure to fine wine in investment portfolios.
Asian Sales Recede Further
Hong Kong and mainland China markets remain sluggish, cautious about progress to end the US-China trade war.
The worry is that Apple’s profit warning is not just an effect of this, but a larger malaise. If this is the case, demand in China can only be expected to weaken further—as will prices.
With fine wine a luxury good, the profit warning only reinforces the past few months of falling prices that JF Tobias has witnessed across the market, driven by Asia.
As Burgundy Ends on a High, DRC Stumbles
The rise of Burgundy continues to dominate discussions at the end of the year. However, whilst the second tier of top producers continues to trade well into 2019, the premium prices demanded by DRC are too much for a weak market, testing prices.
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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.
