The case for investing in wine remains positive in the medium as well as the long term, according to the UK-listed Wine Investment Fund.

Speaking at the annual dinner for the fund’s subscribers, investment manager Chris Smith said that now is a strong buying opportunity for investors as the market index is well below its trend growth.

Wine investment has had rough patch of late: “This past year has been the most difficult 12-month period I have seen in 16 years in the market,” Smith said. ”We have now seen prices fall by over 20 per cent on a year-on-year basis - the first time since reliable indices were created in the late 1980s.”

Smith said that the eurozone crisis, and the earthquake and tsunami in Japan last year have been two big blows for fine wine consumption.

He highlighted that the Liv-ex 100 index, which covers mainly French vintage, is up by 20 per cent in the past five years, a period which has seen the global financial crash in 2008 and the prolonged sovereign debt crisis in Europe. By comparison, the FTSE 100 is down by as much – 20 per cent – over the same period.

Smith said that the future case for investing in wine rests on economic expansion in Asia. Despite fears of a slowdown in China, the country still boasts superior growth figures compared to the developed world. He also said that it has been reported that the value of wine imports to China nearly doubled between 2010 and 2011.

The investment manager also foresees a flight into wine as a key tangible asset because of fears of rising prices stemming from the extensive money-printing programmes being undertaken by central banks in large parts of the world.