Introduction To Wine Investment
What is wine investment?
Wine investment is the practice of buying and holding rare, high-quality wines to sell them later at a higher price. It’s an alternative investment method that relies on the wine’s potential to appreciate in value over time, due to factors like limited supply, aging potential, and increased demand for fine wines.
Investing in fine wine is by no means a new way of generating a return. Over the last decade fine wine investment has increased due to its ability to outperform established financial markets and commodities – even gold over the medium to long term.
3 Reasons to Invest in Fine Wine
1.
Proven Performance
Investing in fine wine is by no means a new way of generating a return. Over the last decade fine wine investment has increased due to its ability to outperform established financial markets and commodities – even gold over the medium to long term.
2.
UNCORRELATED TO MARKETS
The success of fine wines is a simple question of supply and demand and as wine is a tangible asset, the link between the financial markets and the fine wine market is relatively minimal.
3.
BENEFICIAL TAX TREATMENT
Some fine wines benefit from capital gains tax free profits and has favourable inheritance tax treatment*.
*We recommend seeking your own independent investment and tax advice.
Fine wine and the investment market
The success of fine wines is a simple question of supply and demand and as wine is a tangible asset, the link between the financial markets and the fine wine market is relatively minimal.
As more people veer towards investing in wine, the usual pattern of the market changes, acting more like an investment vehicle rather than just a commodity, provides investors with the opportunity to diversify their portfolios with strong return potential.
This is largely due to its resilience when compared to many other investment areas and the rising number of consumers who play a significant part in changing trends.
In the 2008-2009 recession, for example, prices for fine wines rose, as investors began to seek safer havens due to economic uncertainty.
The steady movement of funds to the alternative investment market is being fuelled by the widely-held belief that traditional investments, bonds and equities, are fully valued, expensive and risky.
Choosing your wine
With many established wine making regions globally, selecting which wine to consider could be seen as a time consuming process.
However, only a fraction of wine producers carry such a historic brand presence that can only be developed over decades of wine production and global demand.
So with this in mind, how do investors begin to separate the wheat from the chaff (so to speak). Where do you start?
How do I invest in wine?
Investing in fine wine doesn’t have to be confusing and you don’t have to be a connoisseur to get involved. Our expertise and attention to detail mean that you are in safe hands as we guide you through the world of wine investment.
We’ve outlined our process to show you how easy it is to invest in fine wine.
