Why Invest In Wine
Let's look at four simple reasons below why fine wine is an excellent investment choice. For further information about why investing in fine wine may be perfect for you, please click the tab 'Veblen Wine Investment Guide' at the top right of this page.
1 Demand and supply
There is an ever growing demand for fine wine, especially with the increase in interest from emerging economies. Add to this the fact that the supply of new vintages is restricted by law and land and finally that wine, naturally, will be consumed reducing supply that cannot be made again for each vintage. This makes the perfect match of rarity and active demand, which is why wine has a proven history of price performance and tradability.
2 Diversification
Fine wine is known to be an effective hedge investment, due to its low volatility and the low or negative correlation to other financial assets*.
3 Tax benefits
Buying and keeping your wine ‘in bond’ means your investment will not be subject to Excise Duty or VAT. Furthermore, as wine is classed as a wasting asset it is potentially free of Capital Gains Tax**.
4 Performance
Wine has consistently outperformed more mainstream investments, due to its lows correlation with equities, stocks and bonds in times of uncertainty fine wine is consider a flight to safety. When the main markets are performing well you will also see a rise in consumption levels and therefore less demand, resulting in exponential growth overtime.