Market Performance

Here at Bordeaux Investment Wines we offer investors stable tax free returns averaging in excess of 15% year on year.

As the Covid-19 pandemic rages on, many investors are clinging to their stocks and hoping for the best. What you might not know is that many of the biggest names in investment are turning to fine wine as an alternative with huge potential. Endorsed even by Warren Buffett himself, wine offers a safe yet profitable haven for your capital, with very low correlation to the stock market.

As we’ve seen, both traditional stocks and shares and newer alternatives like crypto currency are inherently risky – the value of Bitcoin dropped 37 per cent within 24 hours in March 2020, while Donald Trump wiped $31 billion off Amazon’s value in 2018 by criticising the company’s tax arrangements.

Fine wine quite simply plays on a different field to these types of investment. While stocks can rise and fall for any reason, including a simple Tweet by a prominent politician, the value of fine wine is simply determined by supply and demand. Demand for fine wine around the globe is rising, especially as more developing countries develop a taste for luxury products.

At the same time, supply remains extremely limited due to the artisanal nature of fine wine production. Since wine is made to be consumed, every time a bottle of rare and sought-after wine is drunk, the price of the remaining bottles will increase.

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.

With fine wine investment, all an investor relies on is that people will continue to consume the wine. Let's face it who doesn't drink wine these days and what are the chances that the best wines in the world will suddenly become undesirable? The average drinker of investment grade wine is usually a high net worth individual that is very unlikely to stop drinking fine wine and open a can of beer instead. Most supermarkets used to have just a few shelves of wine on offer, these days its two isles full of wine or even an entire dedicated department. Then you have all the new found wealth from China, India, Russia and other countries that have now started buying up Bordeaux wine reserves, especially the Chinese they buy over 100 times more wine now than they did just 10 years ago.

 

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