Top fine wine index rises over 3% in February
According to Liv-ex the top 100 wines have risen 3.05% for the month of February.
This is hardly surprising as all we need to look at is the chaos ensuing across major financial markets. Fine wine is a tangible asset that has no real correlation with major financial market places. Fine wine is not susceptible to inflation and in fact is now being seen as a viable alternative to the ISA as there are similar tax incentives.
Sebastian Woolf, Managing Director of Woolf Sung Courtier en Vins commented, ‘Investors want to know their money is safe and that they have some form of savings in place for the future. Most investors do not know what to do given we are in ISA season. Do you put you money into an ISA and hope that inflation stabilises or do you start broadening your investment horizons’. He also added, ‘many of our private clients want something they can show for their money, not just a figure in the bank that seems to be eroding against inflation.’
Fine wine is a proven alternative to regular investments. It has featured as one of the top 5 alternative assets with growth over the past 10 years of 166%. Fine wine should not be looked at as a short term investment. A 3-5 year investment horizon is not uncommon with many investors opting for longer holds in preparation for retirement.