Why invest in wine?
While fine wine investment is no new phenomenon, today market liquidity and price transparency have evolved to the point where investors of all levels can profit from this expanding market.
Whilst traditional markets have been static or seen losses over the last five years, investors in fine wine have seen yearly double-digit returns over the past five years. Wine as an investment has traditionally been associated with low levels of risk and stable returns thanks to its unique characteristics as an asset.
Less than 1% of all wine produced worldwide may be considered investment grade, with the market traditionally preoccupied by the prestigious chateaux of Bordeaux. The finite quantities produced, ever decreasing through consumption generally ensure predictable growth in the long-term with a perfectly inverse supply curve. Fine wine is a tangible asset whose prestige and desirability increases with its value and so may be understood as a Veblen good.
The market for investment wine has shown a steady increase over the last five years, with the emergence of China as leading economic superpower further fuelling its expansion. Emerging markets across Asia, as well as the growth of the BRIC economies is exponentially increasing both demand and competition for a finite supply of fine wine. The delicate balance of managing supply and demand has probably never been more acute in the entire history of fine wine investment trade.
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This essential Fine Wine Investment Guide will take you through the complete, transparent and informative journey of Wine Investment.