Fine wines have been collected, consumed and traded for centuries, providing consistent returns with records over the past 25 years showing that the very best wines have risen by an average of 15% per annum.
The undeniable performance of the best wines proves wine to be a sound long term investment. It is, however, important to remember that, like the majority of alternative investments, wine should be held for a minimum of 5 years.
A lot of buyers from the 80’s and early 90’s, whose collections were built from a pure passion for consuming wines and who would often buy a couple of cases, hoping to sell one to fund the drinking of the other, have now found themselves literally sitting on cases of liquid gold.
Whilst the fine wine market has had some exceptionally stellar years, in particular from 2005-2009 where some wines doubled or even tripled in value and, whilst prices have not always been immune to the global financial crisis, the market has proved extremely resilient compared with more traditional investments such as equities.
China and the Far East’s arrival on the fine wine scene in the last decade has created unprecedented demand for certain fine wine brands, in particular the Bordeaux first growths and more recently the ultra-fine Burgundy, Rhone, Italian and Napa Valley wines.
As global wealth and the number of high net worth individuals increases so does the demand for finite luxuries. As interest in wine is growing at all levels one key factor remains the same; supply.
Production is strictly limited and a Chateau cannot produce more of an older vintage. As the wines are traded or consumed over time they become yet more scarce with the net result being upwards pressure exerted on the prices of those remaining cases. Scarcity is a key factor affecting price.
Here at Vintage Vines we would be happy to advise where we feel the best investment opportunities are in order to maximise your portfolio returns.
Although impressive returns can occur within 12 months, fine wine should be viewed as a mid to long term hold of between 5-10 years. The received wisdom being the longer it is held the wine improves in the bottle and the more scarce it will become as it is consumed.
Perfect provenance is an essential consideration when purchasing fine wine. There have been some very high profile recent court cases involving fake wines. We only sell cases in their original wooden cases (OWC) and we only purchase from trusted and respected sources where we have total confidence in the history of the wine. Additionally all wines entering the Locke King storage facility are checked by professionals for both condition and provenance.
It is essential that the wine you have bought is stored in a professional bonded storage facility. We also advise that it is registered in your name and we would be happy to assist you in setting up your own account ensuring your full ownership of those wines in the account. All of our wines, including wines held on behalf of our customers, are stored at Locke King Vaults, the fine wine underground storage facility of EHD London No 1 Bond in Weybridge. The vaults are underground WW2 air raid shelters and offer perfect conditions for the long term storage of fine wine. www.ehdlondon.com
For specific financial advice, the tax implications or other financial elements of wine investment, it is important to speak to an accredited financial advisor. We do not offer any guarantees on a particular wine's monetary appreciation potential.
As a fine wine broker we are always interested in purchasing perfect provenance, professionally cellared OWC stock. Please feel free to contact us if you are looking to sell your portfolio. If you are selling your wine portfolio please email details to firstname.lastname@example.org