Why Choose Wine Investment

Fine wine investment has for many decades consistently outperformed other types of investment such as property, the stock market, gold, oil, diamonds, the list goes on.

Wine investors enjoy stable returns of between 12% - 40% and sometimes even higher year on year.

A key attraction of investing in fine wine is that, unlike other investments like shares or buy-to-let properties, investors do not need to pay capital gains tax (CGT). This means when an investor sells their wine for a profit, they do not have to pay CGT on those profits. With tax rates up to 28% that represents a significant saving.

Other benefits to fine wine investment include the fact that wine it is a hard asset or physical object that you own, so unlike the stock market you don't just get a piece of paper and you are not reliant on a company's profits to dictate the value.

What drives the consistent rise in the value of fine wine?

Supply and demand:

The wine investment market is driven by supply and demand. Over time the quantity of each wine can only decrease as the wine is consumed. Therefore pushing up prices as supply naturally falls.

Fine Wines mature with age:

Unlike many other assets, wine actually improves with age, becoming more sought after and again pushing prices ever higher.

Finite supply:

There is a law in Bordeaux called Appellation d'origine contrôlée, this law was put in place to restrict the annual quantity of wine produced by each vineyard to guarantee a certain level of quality. In fact the quantity of wine produced each year rarely exceeds 20,000 cases and can be as low as just a few hundred. When you compare this with the millions of cases produced for the supermarkets you can understand why wines used for wine investment are so rare and sort after.

Strong demand:

Demand for investment grade wines has increased every year since 1996 pushing up prices faster than ever as wine supplies deplete. Global demand continues to rise as consumers from countries with expanding economies discover fine wine. For example, the Chinese market for fine wines has increased 100 fold in just 10 years and is still rising.

Fine Wine Market Performance 2021

The size / value of the fine wine market in 2021 was $434.99 billion

The investment wine market saw an average of 23% growth in 2021 outperforming all the major stocks and shares indices.

Looking at the graph what is very noticeable is as usual fine wine has performed steadily throughout the year without all the ups and downs.

As is typical when looking at wine investment performance graphs you don't find sudden dips making wine investment a far less stressful experience while still outperforming other major rival forms of investment.

Is it any wonder that 90% of the UK's high net worth individuals own a fine wine collection of investment grade wines?

For more information about wine investment including details on the best wines the market has to offer, performance graphs, example portfolios, securities and much more please complete the enquiry form.

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