Savor your next bottle of wine...or PROFIT from it!
Investment in wines is not new. Those with expert knowledge of the best vintages and top chateaux of Bordeaux have been exploiting this sector for hundreds of years. Over the last quarter of a century, fine wines have proved to be one of the most consistently stable, high yield and low risk investments in the world.
With capital growth of over 300 per cent since 1992, wine as a commodity has outperformed the FTSE 100 index, Victorian art and gold, offering significant returns without the volatility of the stock market.
High capital appreciation of fine wines
Although it has been impossible to establish a percentage growth on a wine portfolio, there are many examples of exceptional performances from the finest wines over the last twenty years. As is the case with all assets, values can go down as well as up. Aside from the early 1990s and end of 1997 glitches, prices for fine wines from the best vintages have risen sharply over the past 20 years and the wine investment market has, in the case of well-managed portfolios, proved to be a happy hunting ground for the knowledgeable and well-advised speculator.
Fine wine as an investment has many advantages over other structured investments - such as unit trusts, bonds and equities - as it benefits from the following attributes:
- Tax Free
- World-Wide Demand
- Increasing Rarity
- Deceasing Availability
- Low Risk
- Easily Realisable
- Personal Ownership
- No Annual Management Fee
Global demand for investment quality wine has increased tremendously over the last two decades. Supply however has fallen due to limited global productivity and this creates the basis for a very successful and stable market.
Also consider these favourable factors:
- Firstly, fine wine has benefited from a dramatic increase in popularity and there is an established and thriving fine wine auction market. Therefore, it is quite unlikely that demand will diminish.
- Secondly, wine is a transferable liquid asset.
- Thirdly, there is no limit to the amount you can invest in wine and as wine is a 'perishable' item, it is not subject to capital gains tax.
- Lastly, returns aside, a good bottle of fine wine is pleasurable to the taste and senses. You can actually enjoy drinking your investment.
Records that go back over 250 years show that fine wine has remained the steadiest form of investment in the world - unaffected by general elections, stock market fluctuations and interest rate changes.