Wine investing is nothing new, but it’s only in the last ten to twenty years that it has become lucrative for non-private collectors. Wine collectors have a long tradition of buying two or three times more wine that they drink and then resell it later, once the price of the bottle has doubled or tripled, for a substantial profit. Various institutions with the resources and the storage space necessary have done the same thing, with the exception that they did not consume any of the wine they bought, merely waited for its value to increase.
Right now many new wine investment trusts are emerging in Western Europe and especially the UK, which allow anyone with money to invest in fine wines. Some of these funds are thriving at the moment. The reason? Collectors from the China, Russia, and South America are becoming increasingly interested in fine wines made in France, Italy, and Spain. Bordeaux varieties are especially demanded – not so much for their taste as for their reputation; they are excellent for wine investing this year.
Fine wine investment is particularly lucrative for the growing demand for top bottles is set against a dwindling supply. Being restricted by law, reputed winemakers cannot plant new vines and thus increase their grape production. The supply of fine wine is finite. But even more, most bottles are kept corked for some years before they are consumed, which further contributes to a shortage of certain varieties.
Compared to other equity markets, fine wine has great returns and a low volatility, meaning that wine investing is profitable while being less risky than other investment alternatives. This has many benefits but also a disadvantage: the market becomes saturated with investors. Therefore, an investment trust, which allows a relatively easy entrance into investing to someone unfamiliar with wines, may help. Find out some of the best options for Alternative investments by visiting comparethefinancialmarkets.com. Alternative investment market investing in fine wine.
As in all things, when purchasing fine wines for investment, advice should be sought from experts.
Choosing the best wine investment can be difficult, so careful consideration is crucial. Your questions on the best wine investments will be answered by our industry experts, free of charge.
Best Wine Investments for 2018
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