U.S. Economy has not impacted 2008 Fine Wine Auctions (so far)
Monday, November 3rd, 2008The U.S. economic news has not been good this year, with a looming recession and many failed financial institutions. So it may surprise you that despite the bad economic news, more than $66 million worth of fine and rare wine were sold at US auction in the second quarter of 2008 alone. This is a 23 percent increase in sales over the same period last year. The crises on Wall Street (and the record gas prices on Main Street) have not dampened enthusiasm for fine and rare wines auctions. In fact the Wine Spectator’s auction price database shows that in the first half of 2008, the Fine Wine Auction value rose, while the Dow Jones Industrial Average fell more than 7 percent for the same period. All the wine divisions of the big auction houses are steadily growing, and some houses have over 20 wine auctions a year.
Rare Wine values at auction are skyrocketing in the United Kingdom as well, and in fact the increases logged there have also bested their popular UK stock index, the “Indy 100”, (the recognized indicator of general economic health in Great Britain). Wine auctions in Great Britain are showing bigger gains than the US, with an amazing 39% increase for the first half of 2008. Bordeaux is leading the way at auction, with more than a 90% increase in sales over 2007.
In the U.S., charity auctions are among the biggest movers every year. One of the biggest annual charity auctions is the Auction Napa Valley, held every summer in the heart of wine country. With Oprah Winfrey and Jay Leno on hand this year, there is never a shortage of star power at this superstar charity auction, which mingles the movie stars from Hollywood with the Wine Stars from Napa and Sonoma. This last summer saw almost 900 people participate, and raised a near-record $10.35 million, falling just short of the high set in 2005. About 150 wineries pour their best at this event, along with 60 restaurateurs and artisan food producers from the valley. Just remember to bring your checkbook along with your autograph book!