Why and how investing in fine wines can be highly beneficial is a popular query for investors looking to step into the fine wine market.

As it has been proven, wine investments are consistently outperforming traditional investments such as stocks/shares, real estate and commodities (even Gold) with higher returns alongside relatively low risks.

The crucial advantages of investing in fine wines:

Investing in Wine is Stable

In the current climate of economic concern and financial downturn, fine wine prices remain consistently steady. Unlike the stock market or property market, wine investment in 2014 is not dependent on economic conditions or interest rates.

Impressive Returns

The fine wine industry is currently booming. These blue-chip wines have consistently outperformed most assets over the past 20 years and are continuing to do so. The average annual return can be as high as 5% — 15%.

Tax-Free Investment

Fine wine is a 100% tax-free investment. This means you will never be subject to any capital gains, income or inheritance tax. Best of all, your profits are also completely tax-free. In addition, if your investment wine is kept ‘in bond’ you will not have to pay VAT (Value Added Tax) or duty either.

Demand and Supply

One of the greatest advantages of investing in wines is that supply of any given stock is finite. The combination of an increasing global demand and decreasing supply makes fine wine such an attractive proposition for investors.

Hedge against other Financial Securities

In definition, a ‘hedge’ is an investment that is taken out specifically to reduce the risk in another investment. Whether your portfolio entails equities, bonds, properties or commodities, a well-diversified portfolio containing fine wine offers maximum risk-adjusted returns.

Personal Ownership of a Tangible Asset

Wine is a tangible, transportable and consumable asset. Invoices, payment receipts and bonded warehouse accounts all certify the exclusive ownership of your investment wine. Just like with real estate, you — the investor, will always be the full owner of these investment wines. Therefore it is known to be a tangible asset.

Luxury offers Protection against Inflation

Luxury products are not prone to market turbulence, as the wealthy and prosperous are not necessarily affected by financial uncertainties. Similarly, for luxury wines that offer investment value, demand will always be maintained. Even during market turmoil or declining financial markets, these high-end luxury wines continue to appreciate in value.

Depreciation — still a treasure

At Bordeaux Traders, we place great importance on achieving the highest possible profits for our clients and strive to commit their assets sensibly. Just for your kind information, however, it may also be of interest to know that at the end of the day, it is your wine — maybe even to drink. So if one or two cases paid for themselves through strategic investing, then you may also wish to one day taste one of the most exclusive fine wines in the world yourself.

Any investor looking to add a competitive edge to their investment portfolios should consider diversification through fine wine. Intelligent selection backed by a thorough understanding of the fine wine market can lead to astonishing returns. For this very reason along with the aforementioned benefits, there has been an explosion in popularity in fine wine investments over the last decade.

Website: https://cwinex.io/

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