Eight reasons why you should invest in fine wines.
1. Tangible asset
If you invest in fine wines you will be the owner of the wine, which is a real asset and unlike a share or bond, has an intrinsic value.
2. Inflation hedge
The price of fine wine tends to increase with inflation. This makes investing in fine wine a good way to preserve wealth in times of high inflation.
While it is advisable for investors to set a three to five-year horizon for their portfolios, wine investment can be liquidated or extended, according to individual requirements.
4. Developing asset
Fine wine quality improves with age and, although it is not an income-producing product, it is a tool for capital appreciation.
5. Finite product
Fine wine appellations are not extendable as strict laws govern the production of the majority of investment-grade wines. With the emergence of new markets in Asia increasing global demand, the delicate balance of managing supply and demand has never been more acute, probably in the entire history of the fine wine market.
Classed as an alternative investment, fine wine can add valuable non-correlated returns to a portfolio, while reducing overall risk.
It’s for this reason that fine wine has been proven to be a well-established asset class in times of financial turmoil, providing a safe haven for investors.
7. Tax Benefits
As a result of that fact that wine is considered by UK tax law to be a wasting asset (perishable within fifty years) in certain conditions there are tax breaks available when investing in the wine market.
8. Passion or interest in wine
Fine wine is a fascinating subject matter and investment in the market allows enthusiasts to combine their interest with the potential for capital appreciation