What are The Benefits of Fine Wine Investments
When investing in wine, the benefits can often seem endless; with returns averaging 20% per annum and the asset itself being tax free, wine investment has proven itself as a great opportunity. Despite being seen as a fairly new market for the public to invest in, wine collectors are already echoing with stories of success from back vintages. Due to the aging ability of the top wines, Fine Wine investments can offer an investment not only for the short-term to mid term but also for the long term future. Whether it be for retirement or something for your children, Fine Wine seems to only appreciate and gets better with age.
Benefits. •Low Risk •Tax Free •Capital preservation •High Returns 12-30% per annum
The recent demand, from China, for wines such as Chateau Lafite and Chateau Latour has forced a surge in the market value of fine wines with top wines dramatically increasing. This has allowed greater returns for the back vintage collectors and new interest in this market is further pushing the ceiling. 1st growth Bordeaux wines have become the new status symbols of Chinas business elite and the wealthy.
Due to the quality of these wines and the French laws imposed that restrict their production rates, 1st growth Bordeaux's have become a highly sought after commodity world wide. With wines such as Chateau Ausone only producing 2000 cases a year the supply for these wines is carefully limited allowing for its high demand to yield even higher returns.
When investing with in wines, its always important to know which wines are worth investing with. This is vital as only 1% of the worlds wines are classed as investment grade or Blue Chip. Wines from the Bordeaux regions of France make up most of this 1%. Bordeaux produce some of the worlds greatest wines and the worlds most traded.
The demand for these wines is also created through the critics of the wine world, whose opinions can sometimes make or break any vintage. With the consumers often hanging on every word of wine critics such as, Robert Parker, it is always best to double check the critics ratings of the wine before looking to invest in anything. 90+pts wine are considered to be the best for investment. 95-100pts Are considered exceptional.
The wine market looks to go nowhere but up. Wine is in high demand and with China expected to become the 7th highest consumer of wine in the world by 2013, there seems to be no slowing of the appreciation of the Fine Wine Index