Investing in a tangible, alternative asset such as fine wine has been proven to enhance overall investment strategies. It provides a low-risk, stable, tax efficient investment with good long-term growth performance. Fine wine is generally resistant to the negative effects of inflation and is therefore an important asset in times of economic uncertainty and a perceived safe haven for cash.
The key reasons to invest in fine wine are:
- Optimising investment performance - A low-risk, stable, alternative asset whose performance does not generally correlate with more volatile financial markets offering strong long-term growth potential and portfolio diversification across assets and economic cycles
- Preservation of wealth – the value of fine wine is generally unaffected by periods of inflation and it provides the means to protect cash particularly as a UK domiciled investment
- Tax efficient investment – profit on investment in fine wine does not generally attract CGT, however advice should be sought, click here for more information
- Going to cash - An investment with a dynamic and relatively transparent secondary market providing liquidity to investors
- An investment you can get excited about – In certain circles it is termed a ‘passion investment’, fine wine is exclusive, prestigious, interesting and enjoyable.
What has been your best buy?
“I once bought a case of Chateau Cheval Blanc and sold it six years later for ten times what I paid for it. I enjoy buying a few cases of wine as an investment and take advice from a friend who is in the wine trade.”
Wimbledon Champion, Virginia Wade
The Telegraph, Personal Finance, 16th January 2015