Liquid Gold: Fine Wine and Whisky as an Alternative Asset
Bordeaux Index
15 October 2024
Matthew O'Connell, CEO of LiveTrade and Head of Investment at Bordeaux Index, was recently interviewed for The Alternative Investor. In this article, he talks us through the investment potential of fine wine and whisky, as well as the revamped LiveTrade platform.
Ever-changing, the fine wine and whisky market has evolved fine well beyond its buy-on release model to become a serious, dynamic investment category with a global client base. Utilised by many as a tax-efficient way of diversifying an investment portfolio, fine wine has historically been shown to outperform equities, oil and gold by a considerable margin. Whilst the wine market, in 2024, has not boasted such soaring statistics as prior years, it has tilted the table towards buyers, with price declines allowing buyers to secure top wines at lower than-average prices.
There continues to be strength in the rare whisky market, with the global thirst for hard-to-source old and rare bottlings continuing to remain high. The secondary market for rare whisky remains exceptionally strong and has diversified significantly as new names see ever-increasing demand alongside the ongoing growth of longtime leader, The Macallan. There is particularly strong activity in the cask market which many participants see as especially attractive given the ability to own old and rare liquid that is still ageing in an environment where the asset is increasingly scarce. Some distilleries saw price rises of over 50% in casks of 25 years old and over with Springbank, Bowmore and Highland Park being good examples.
Once operating behind closed doors, the trading of fine wine and whisky has been modernised by companies such as Bordeaux Index, thanks to the introduction of online trading platforms. Offering a seamless, transparent and secure way to trade fine wine and whisky, LiveTrade, Bordeaux Index’s trading platform, promises that is it not just capable of keeping pace with contemporary demand, but of enabling this sector to reach even greater heights. Individuals looking to invest in fine wine may find this a fitting time to embark on such a journey, with this accessible platform making it easy to place competitive bids on top wines across the globe.
Recent developments to the platform have seen the introduction of ‘My Portfolio’, a tool showing all valuations on a net basis. Users of the platform can see at a glance how far apart bids and offer lie, as well as areas of the market where activity may be imminent. The provision of ongoing two-way prices encourages greater market liquidity and gives collectors and investors confidence to buy and sell more actively. In its growth, LiveTrade has recently extended into the complementary world of whisky, offering a platform for the buying and selling of whisky as well as fine wine.
Ultimately, when deciding to invest in wine or whisky what is of upmost importance is transparency and security. In times of economic shift, a purpose-built trading platform offers its users the tools they need to begin building or developing their personal portfolio, taking advantage of fluctuations in the market to seek out areas of imminent activity. LiveTrade, as a platform, is constantly growing and evolving with the market, boasting firm bid and offer prices 24/7 on wine and whisky from across the globe. Today, LiveTrade sees over 100m in transaction values per annum across over 200,000 bottles traded. It has been recognised for its achievements winning Trading Platform of the Year for five years in a row with The Drinks Business.