Learning aboutFine Wine Investment
Investing in Fine Wines
Alot of interest is being shown inalternative investment opportunities, wine investment may be for you as many people are fred up with the low performance of stocks and shares.
Wine Investments have produced good returns for investors for the past 30 years.
The advantages of wine investmets include:
Finite Product: When a fine wine is produced it’s volume is fixed per year and over time each vintage then diminishes as wine is consumed which leads to limited availability and hence prices rise.
Tangible Asset: Unlike stocks and shares wine is a physical product, therefore in the worst case scenario, if the wine fails to go up in value you can always drink it.
Tax Free: Under UK taxation rules table wines are considered a “wasting asset” and so capital gains tax is not charged. Also if the wines are purchased and stored in a UK Government bonded warehouse, they will be free from VAT and Duty free.
Investing in fine wine over time has produced over 11% per annum on average. Prices do vary over time and can go down as well as up, but if purchased wisely the risks of this can be minimised.
For some of the world’s most desirable wines the big problem can be getting hold of them. Some wine producers have exclusive agents for their wine, and they will sell to their best customers first.
What wine to buy?
To make the best return on your investment it is advisable to buy the best clarets from great vintages early when they are still in their original wooden cases this is also known as “enprimeur”. This is of course based on personal choice, but most of the top performing wines come from the Bordeaux and Burgundy.
When looking at wine for sale always shop around to get the best prices possible, and as with any commodities the rules of wine investment are the same, price is determined by supply and demand, buy low and sell high.
I hope the above information on wine investments helps you.