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Welcome to Investing in Wine

 

Investing in Wine

 

Wine investment has gained more popularity in recent years than it has ever before. In recent years,fine wine has developed as a desirable luxury item beyond its traditional markets of Europe and America. With an increasing recognition of its worth, the stability and rate of returns from wine investment has never been stronger

 

12% - 30% Average returns Per Year


With a strictly limited supply on one hand, and an ever-increasing international demand on the other, this mounting supply-deficiency ensures a constant appreciation of wine prices over the years.


Tax - Free Investment

 

While many modes of commodity investments in the market would involve the investor being charged taxes at one point or another (for duties and excises etc.), Under current UK taxation rules NO TAXES are paid on gains as long as you do not trade the wines on a regular basis. The current ruling by HM Revenue and Customs is that “A wasting asset is an asset with a predictable life of 50 years or less”, and generally a collection of fine wines will come in to this category. Any gain on a wasting asset is exempt from Capital Gains Tax.


Read the book on how Fine Wine has outperformed more traditional investments

 

“The 90’s were all about stocks. Before that it was real estate. Now the action is shifting to alternative investments – fine wine, fine art and antiques. Fine wines’ relative lack of volatility makes it hugely attractive, especially to those whose portfolios were recently abused by the stock market. Fine Wine markets are less susceptible to market downturns and adverse economic conditions”

 

MAHESH KUMAR -


Wine Investment for Portfolio Diversification
"Wine Investment for Portfolio Diversification: How Collecting Fine Wines Can Yield Greater Returns than Stocks and Bonds" by Mahesh Kumar, dubbed the most thorough piece of academic analysis on wine ever published.

Read the article on Smart Money.com

Vs FTSE 1
The rate of return on fine wine investment is generally non-correlated to equities in times of stock market downturn. Between 1987 and 2007 decreasing returns from FTSE 100 stocks have tended to correspond to periods of value increase of fine wine.
Sources: Kumar, Wine Investment for Portfolio Diversification, FTSE 100
Vs FTSE 2
In periods of correlation between fine wine and equity markets, fine wine generally outperforms the FTSE 100.
Sources: Kumar, Wine Investment for Portfolio Diversification, FTSE 100

Read our Guide to "Investing in Wines": Download Brochure


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