Despite 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.
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.
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.