Fine Wine performance
Fine Wine performance since the start
The table below illustrates a few of the top Chateaux from Bordeaux and Champagne.
|
Chateau |
Vintage |
Average Price per case (£) January 2013 |
Average Price per case (£) June 2013 |
% Increase |
|
Lafite Rothschild |
2003 |
7700 |
8500 |
10.3% |
|
Mouton Rothschild |
2003 |
3150 |
3500 |
11.11% |
|
Pavie |
2009 |
2500 |
2900 |
16% |
|
Dom Perignon |
2002 |
930 |
1050 |
12.9% |
|
E.Guigal Cote Rotie La Turque |
2005 |
3948 |
4620 |
17% |
|
Margaux |
2004 |
2900 |
3350 |
15.51% |
There is clearly merit for owning fine wine as a way of diversifying from traditional asset classes and potentially reducing portfolio risk, but the returns illustrated above are extremely pleasing. The total investment sum for the above was £21,128 in January 2013. The approximate market value June 2013 is £23,920. This represents a return year to date (YTD) of 13.2%.
Most investors treat fine wine investment as an alternative to Bonds, ISA’s and savings accounts. The table below illustrates the best returns offered by savings accounts, bonds and ISA’s compared to fine wine.
|
Product |
Rate (%) |
Sum Invested (£) |
Return YTD (£) |
|
Nationwide Savings Account |
1.7 |
10,000 |
85 |
|
Nationwide ISA |
2.25 |
10,000 |
112.5 |
|
Agri Bank 5 year fixed rate bond |
3.6 |
10,000 |
360 |
|
Fine Wine |
13 |
10,000 |
1300 |
*all rates correct as of June 2013
** sources moneysupermarket.com and Woolf Sung
The moral of this story is simple. Before you choose regular bank based savings schemes because you feel that there is no other alternative, speak with Compare the Financial Markets and they can illustrate the significant pleasures and benefits of investing into fine wine.
