Image Source: Sentiment around the luxury market quickly turned negative in the second half of this year as elevated inflation, high interest rates, and a slowdown in the economy pinched consumers.In May, we first asked this question: ? By June, we pointed out .In October, we said: , and . Then last month, we noted: . Within the deflating luxury bubble, we now focus on the fine vintage champagne market that has popped. cites new data from online wine marketplace Liv-ex that shows the Liv-ex Champagne 50 price index, which nearly doubled during COVID-19, has moved well off its high since the Federal Reserve embarked on the most aggressive interest rate hiking cycle in a generation.”Speculative money came into the market, buying multiple cases when they really needed only one or two,” said Justin Gibb at Liv-ex. Just like speculative money has dumped Rolexes, Gibb noted, “They’re now selling these excess cases.”Champagnes with the largest price gains during the pandemic have retraced the hardest. According to merchants, speculators who stockpiled cases of 2012 Roederer Cristal or 2004 Krug have been hit by a hangover this year, losing more than a fifth in price so far. Much of the fizz is coming out of the fine vintage champagne, as well as fine wine, according to other Liv-ex indexes:As for the champagne market as a whole, the United States and the UK are the , accounting for 33.7 and 28.1 million 750 milliliter bottles in 2022, respectively.The downturn in luxury might impact champagne sales this holiday season.More By This Author:Treasuries Tumble After $1 Trillion Reverse Repo Drains $190BN In Liquidity, Index ChangeChicago PMI Pukes From 18-Month-High – Biggest Drop Since COVID LockdownsFutures Flat On Last Trading Day Of 2023 As All Time High Beckons
