Making investments can be very daunting for first-time investors, especially those with only modest amounts to invest. There is a lot of talk about cryptocurrencies, such as Bitcoin, but many people struggle to understand something that doesn’t exist in the physical world, and it can be a volatile market. So as a first-time investor, you’re probably looking for a tangible asset, something that is easy to understand, has sustainable growth with double-digit returns and is also tax efficient. In fact, it’s one of the few tax-free investments you can make.
A Steady and Stable Investment
Fine wine is one of the best alternative investments you can make, and you don’t need to invest a huge amount of money in order to enjoy a great return. Since 1988, fine wine investments have grown at an average rate of 12.4% a year, meaning you will probably double your investment within 10 years.
There is always a market for fine wines, which means it’s a safe investment to make. The longer you keep your wine, the more likely it is to increase in value – other investors will be selling their wine to merchants who sell it to consumers. And the more wine that’s drunk, the more yours will increase in rarity value.
An Investment You Can Visit
The best thing about investing in fine wine is that you actually own the bottles you’re investing in. As part of your management fee, your wine will be stored in our secure bonded warehouse, and if you want to, you can arrange to visit it! There’s also nothing stopping you taking a crate of wine home to drink… except it would reduce the value of your investment.
In our bonded warehouse, your wine will be stored at the correct temperature and humidity to keep it at optimal conditions. It will be covered by a comprehensive insurance policy. Storage and insurance are covered in our management fee for the first five years, with a charge per case per year thereafter.
Why We Use Liv-ex
All our investments are made through Liv-ex, a trusted global marketplace for the wine trade. We work with Liv-ex because it has thousands of different wines in stock, has hundreds of merchants to sell to, sets a fair price, gives us access to the most trusted data enabling us to give you better investment advice, and organises the logistics of transporting your wine safely to our bonded warehouses.
Buying through Liv-ex gives us the assurance that the wines you buy are sealed in bond (SIB), which means they have always been kept in optimum conditions.
We have a lot of clients who are investing in fine wines at the birth of their children or grandchildren. With an average annual return of 12.4% over 18, 21 or more years, the investment could go a long way to helping them get started in adult life, whether it’s to get them through university or put towards owning their own property.
You can increase the value by adding to their investment over the years, netting them a healthy tax-free sum when the time is right.
Selling Your Wine
It’s really easy to sell your wine – just let us know and we will find the best price for it! You are able to sell any or all of it at any time with no time commitments or early-release penalties.
You will be able to track the progress of your fine wine investment through your online account, but we are always available if you need any advice at any time.
Your first investment in fine wine can be anything from £500 upwards. We find that many investors like to start small until they get to know and trust the market, after which they are confident enough to invest even more and create a portfolio. Contact us to find out more.