A Great Investment to Gift to Your Children and Grandchildren

We all want the best for our children and grandchildren, so it’s our job to help them set up in life in the future. On the birth of a child or grandchild, it’s a very common thing to open a bank account for them and add a monthly amount, so by the time they go to university or want to buy a house, you’ll have accumulated enough on their behalf to help out. But with bank interest rates so low, is there something you can do that will get a far better return, but without too much of a risk? The simple answer is yes, and the best investment? Wines. 

Looking at Fine Wine Investment in 2021?

The last year has been a very good one for fine wine investors, who enjoyed a 13% rise in the value of their assets, which by far exceeds other asset investments (luxury watches gained 5% and classic cars 4%). Indeed, the price of fine wine has risen by 119% over the past 10 years which, if you’re looking for an asset that will mature alongside your children or grandchildren, represents a very good investment indeed. 

There are a number of reasons why investing in fine wines on behalf of your children and grandchildren is a good idea...

It’s a tax-free investment – wine is considered to be a ‘wasting asset’, i.e. it has a life expectancy of fewer than 50 years. As such, it is not subject to Capital Gains Tax. And whilst it is stored in bond, your wine is exempt from duty and VAT. 

Fine wine is produced because it’s meant to be drunk. Humans have been making and drinking wine for thousands of years, and there are a growing number of fine wine enthusiasts around the world, so there will always be a market. 

When it comes to the best wine investments, the longer they mature, the better – and therefore more valuable – they become. We recommend that all our investors hold on to their investment for at least five years in order to get decent returns, making it an excellent long-term investment. 

Another aspect of fine wine investment is that the longer you hang on to your investment, the more valuable it can be. As the wine matures, other investors will sell their wine, meaning the same wine you bought as an investment for your children and grandchildren will gain in rarity value, adding even more to its worth. 

Why Invest Through Vintage Associates? 

We are members of Liv-ex, the global marketplace of the wine trade, which means we have access to the global market, accurate pricing data and market insights, as well as the organisation’s global logistics network, ensuring the safe transport of your investment and secure storage in bonded warehouses. 

We store all our clients’ wines at London City Bond. Where it is stored in perfect conditions and regularly checked, will be kept secure and is fully insured. As an asset investment, your children or grandchildren will physically own their own wine and can even arrange a visit in order to see it for themselves. The costs of storage and insurance are included in our management fees. 

Your children and grandchildren will be free to sell their investment at any time – there is no fee to sell through Vintage Associates. If they want, they can even opt to drink some of their wine, although this will, of course, devalue their investment.
If you would like to find out more about investing in fine wines, click here to download our guide, or contact us to make an appointment.