Wine InvestmentDespite challenging market conditions over the past five years, wine investment still boasts a notably impressive track record. With an ever-increasing international demand, coupled with a static, and more often than not, diminishing supply, investing in wine can be an attractive proposition.
Fine wine investment truly found its feet as a global endeavour in the 1990s and the basic premise of the day. Buying more than you intend to drink, before selling the excess at a later date to fund your enjoyment or subsequent purchases, is still the basis by which most of our clients invest in fine wine today.
Why Invest In Wine?
Traditional markets for fine wine investment such as Europe and North America – and in particular the UK and the USA – were joined in the 1990s by the emerging markets of the Far East. In addition, pockets of wealthy, fine wine lovers from across the world were attracted to wine investment as a means of diversifying their investment portfolios. This created unprecedented demand for the world’s leading fine wines, and effectively drove prices up.
As this global demand, and consumption, of the world’s finest wines continues to increase, an opportunity is presented for fine wine investment which could provide a financial return over the longer term.
Why Do Some Wines Go Up In Value?
The world’s greatest investment wines mature in bottle and tend to improve with age, some over many years and in some cases, decades. A wine estate is limited to making a relatively similar amount of wine every year, and in the quest for the best possible quality, many producers are employing cutting-edge technology such as optical-sorting tables to ensure that only the best grapes are included in their fine wines.
Less grapes results in less wine. Combine this with consumption – wine is, of course, a perishable product which is intended to be consumed – and you have a situation where demand tends to rise as wine is maturing and remaining stock is reducing.
What To Consider When Investing In WineWine Provenance
When investing in wine, it should be bought in original, usually wooden, casing and from a reputable merchant who can inform and prove the provenance of their wine. Read more.
Buying Wine In Bond
Buying wines In Bond is a popular and necessary way of investing in fine wines, especially when they are first released to the market En Primeur. Read more.
The world’s finest wines inevitably come from the world’s finest wine cellars and correct wine storage for a fine wine is one of the most difficult things to find. Read more.
Whilst short term gains have been possible, it is generally agreed that fine wine investment should be viewed over the mid to long term of five to ten years. Read more.
Wine Is A Tangible Asset
Unlike stock and shares, wines that do not perform well financially can at least be consumed and enjoyed.
Which Wine To Invest In
When deciding which wine to invest in, diversification is important. Wine trends and reputations can come and go, so it is not recommended to have holdings of only two or three wine estates. It should also be considered that the number of wines that provide the greatest opportunity for investment is extremely limited. Cru Classé Bordeaux, Super Tuscans, Grands and Premiers Crus from Burgundy, Vintage Champagnes and iconic wines from Spain, North and South America have proven reputations for strong fine wine investment and global secondary markets which demand them.
Armit Wines have been exclusively importing a number of leading fine wines from around the world since 1988, and we have a proven track record of over 30 years of successful and reliable trading. As a result, we are qualified to share our knowledge, informed opinion and provide information about wine investment, wine vintages and their quality as well as prevailing market conditions.
However, the wine industry is not regulated and Armit Wines is not a registered financial institution. Therefore, we do not and cannot provide financial wine investment advice or any guarantees about the potential increase in a wine’s value. Wine prices can of course fluctuate, decreasing as well as increasing over time, and many factors have an influence here. We recommend all of our clients conduct their own research before making wine investment decisions.