Is a fine wine investment a potential retirement ‘nest-egg’?

Are you considering your long-term future and a possible ‘nest-egg’ investment? A 59-year old bank manager has recently retired off the back of a 30 year-old whisky investment – can fine wine offer a similar return?

Having invested a total £4,700 on two casks of whisky (a Macallan single-malt – £3,200 and a Tobermory – £1,500) in 1994, Mr Roger Parfitt sold them recently for £225,000. He admits to having no prior experience in investing in whisky and saw the investment as a ‘bit of a gamble’ but hoped for some level of return over the long term. And he was not wrong! Imagine his delight when the recent sale of the two casks raised £225,000 and allowed him to pay off his mortgage and retire early.

Investing in a blue-chip whisky brand, Macallan, was the right move and Parfitt also benefited from the recent rise in rare whisky values. So over a similar period approaching 30 years – can fine wine offer comparative returns on investment?Grand Cru Domaine Wine

Rare Burgundy, Domaine de la Romanee Conti would be the obvious fine wine comparison and a case of Domaine de la Romanee Conti, Romanee Conti 1990’s release price in 1993 was £5,300 (12 x 75cl). The market value for that case today is £282,000 delivering a 5,220% return over the 28 year period, or for the more technical, an annualised return of 13.7%.

YES indeed fine wine can be that nest-egg investment tucked away – come on you young investors – put a case away for when you turn grey!

Contact our expert team for more information on fine wine investment and investing in new releases (en primeurs) and see our Guide to Collecting and Investing in Fine Wine . See the Drinks Business article here.