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Fine wine is souring as investment prices sink
  + stars: | 2023-07-12 | by ( Nicole Goodkind | ) edition.cnn.com   time to read: +7 min
New York CNN —Fine wine prices have been rising consistently for years, attracting investors looking to hedge against inflation, economic turmoil and stocks. The company currently manages $375 million worth of fine wine assets (that’s a 45% increase year on year). Fine wine has had a compound annual growth rate of 10% over the last 30 years, according to the Liv-Ex investables index, which tracks the going rates for fine wines. Leading the way in losses is Bordeaux, which experienced the largest drop of all fine wine categories in June. That’s a bit worrisome, said Tiwari, as Bordeaux is the most established region in the fine wine investment market and typically maintains its price stability.
Persons: Jay, David Beckham, Stephen Curry, Liv, , Atul Tiwari, That’s, Tiwari, SVB, Rob McMillan, , we’re, LIV Golf, Chris Isidore, Richard Blumenthal, Ron Price, Jimmy Dunne, Sen, ” Dunne, LIV, Clare Duffy, Clare Organizations: CNN Business, Bell, New York CNN, Cult Wines, SEC, First Citizens Bank, , PGA Tour, Saudi, PGA, Connecticut Democrat, University of Pennsylvania Locations: New York, Bordeaux, London, Silicon, Napa, California, “ California, Saudi, American, Connecticut, Clare
Silicon Valley Bank lent over $4 billion to wineries in the past 30 years, according to its website. Gavin Newsom as one of its investors, founder John Conover told Insider. A large portion of SVB's clientele came from the startup ecosystem, but it also established a good footing with the west coast's wine industry. Since the division's founding nearly three decades ago, SVB has loaned more than $4 billion to its wine-centric clients, according to the bank's website. On Wednesday, SVB Financial Group announced it was in a cash crunch that caused panic among customers and a massive $42 billion bank run.
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