21 JUNE 2014 FAMI LY VALUE S 7 PREMIUM Fine wine market set to surge in 2014
A combination of market volatility, anxiety over sovereign debts and the new age of austerity have led many investors to seek out ‘investments of passion’ — assets that they can see, touch and enjoy, while also delivering impressive annual returns, averaging 10-15% for many investors.
Investing in fine wines is nothing new: many years before fine wine really became global, buyers often bought more than they intended to drink with a view to selling on the excess to fund their next purchase. Bordeaux, in southwest France, is the planet’s largest source of fine wine and the reds produced here are considered by many connoisseurs to be the world’s greatest. History has shown the finest wines have proved
to be safe long-term investments and, for many, more desirable to own than assets such as gold, for example — especially since the Gold Index recently had its worst two-day performance since 1983, leading to the end of a 10-year boom, and also because it’s easier to enjoy than gold. Wine has also performed well in comparison with the UK housing market, among many other investments.
Supply and demand Recently, an explosion of interest
from Asian
buyers has caused fine wine prices to rise fast, and over the past five years alone, China’s levels of wine consumption have grown at a compound annual rate of 18%. It has also been predicted that the Russians will consume 5.53 million more cases in 2014 than they did in 2010. Demand for these wines has never been higher,
but supplies are limited and not enough ‘blue chip’ wine is being produced to satisfy the growing international market. As bottles are uncorked and the wines consumed, they become even rarer still,
leading to brand-
obsessed buyers chasing a rapidly diminishing supply of trophy wines.
Vine Capital Ltd Vine Capital is a London-based team of fine wine
specialists with years of experience in buying and selling the finest and rarest wines. We build exclusive relationships with suppliers, making our selection of wines unique and therefore offering our clients a service that distinguishes us from the others on the market. Offering a complete brokerage service, our
team have both an in-depth knowledge of the fine wine market and a background in the financial
“History has shown the finest wines have proved be safe long-term investments and, for many, more desirable than assets such as gold. Wine has also performed well in comparison with the UK housing market”
sector, and will guide you through our exclusive selection of fine wines to help you build a strong and diversified portfolio.
Tax-efficient All our wines are stored at London City Bond’s
Vinotheque warehouse, which has ideal conditions for wine storage, ensuring the wines are able to mature properly. While there, your wine will be exempt from VAT and customs and excise duty and generally exempt from capital gains tax, as they are classed as ‘wasting assets’.
Market growth We proudly take an active approach to research and
analysis, and as a result, we can regularly provide
you with updates on market value and new wines set to surge, ensuring we’re best placed to assist you to take advantage of opportunities when they arise. Te future of this market is extremely exciting and some experts are predicting an increase of 10% by December 2013 and expect to see the market growing by 22% by Christmas 2014.
To find out more or to start building your portfolio today, speak to one of the team by calling 0845 077 3041 or emailing
enquiries@vine-capital.com
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