Investment Points
Investment
length
We would recommend that you hold onto
your wine for a minimum of 3-5 years, to
make the best returns in the market.
However, clients are not tied into
investment for a set term and our
job is to closely monitor client
portfolios and market trends. This
allows us to inform clients of the best
exit strategy, whether that be 6 months
or 10 years after purchase.
Growth
Rate
Over the last 10 years the average
across all investment wines has been
10.9% compound interest. The best wines
have accrued this type of percentage in
a matter of months over the past couple
of years but this is specific to
individual selections. As a company we
aim to achieve 20-25%
annualized returns for our clients.
Storage
Your wine is stored at London City Bond
in Tilbury, Essex. The largest and
oldest bonded warehouse in the UK, your
wine is stored in perfect conditions
with constant temperature control. By
storing you wine here, it will have
excellent "provenance" and therefore
will command the best value when the
time comes to sell and is exclusive of
Duty and VAT. With the vast majority of
the UK wine trade using LCB, delivery
and shipping costs are greatly reduced,
savings which are passed on to the
client.
Provenance
The highest profits in wine investment
are achieved with certified provenance,
this means original perfect stock from
certified sources. We only work with
certified products, ensuring the highest
price will be achieved upon sale.
Selling
We sell under bond, which means you do
not pay UK duty and VAT @ 0% commission.
Capital
Gains
Wine is considered exempt from CGT
charges up to £250,000 as it is classed
as a wasting asset rather than chattel.
We sell all our clients wine in bond so
there will not even be tax to pay on the
sale.
For further guidance from HM Revenue &
Customs visit
this article or speak with an IFA /
Accountant.
Investment Amount
The minimum investment amount is around
£5,000. Given the overview of the market
at present, the best returns can be made
on the top 1% such as the 1st growths of
Bordeaux from the classic vintages.
Prices per case of these types of wines
start at around £3,000 per dozen, and go
up to around £40,000 per dozen for very
rare vintages nearing their acceleration
point in value.
Risk
Naturally, there
are examples of individual wines dipping
in value over the short term. However,
provided you buy wines from the very
best Chateaux and from the best vintages
there will always be an upward trend on
their value over the longer term.
The market works on a supply-demand
imbalance and with wines that improve
with age, relative demand increases as
supply decreases. |
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Current News
China Set For Luxury Boom
(WARC - 02/02/2011)
Time For Fine Wine Investing?
(Interactive Investor -
01/02/2011)
Is Investing In Wine A Good Alternative Asset?
(Money High Street - 31/01/2011)
Andrew Lloyd Webber's Wine Auction Fetches £3.5m
(Telegraph - 22/01/2011)
Investors Toasting A Vintage Year
(The Drinks Business - 14/01/2011)
Wine Booming After 40% Rise In 2010
(This is Money - 08/01/2011)
Where To Invest In Wine In 2011
(Wall Street Journal (blog) -
07/01/2011)
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