Wine Investing Cuffley

What is Wine Investing?

Wine investing is exactly what it sounds like, it’s investing in wine. But, the finer details of this type of investing and what it entails can be a bit more complicated. Interested in wine investment in Cuffley? Investing in wine involves buying bottles of wine that have the potential to gain in value over time.

The fine wine market focuses on vintages that show investment potential, which means it is considered long-lasting, rare, and in-demand. You’re not going to be a successful wine investor if you head down to the local grocery store and purchase a few bottles of mass-produced wine for £7!

In the past, vintages produced in the regions of Bordeaux and Burgundy in France dominated the fine wine investing market. However, today, it is also worth investing in wines from all over the world.

In fact, according to Liv-Ex (London International Vintners Exchange), in the last five years, wines produced in Italy and the United States have become some of the most popular investment wines, with many regions producing investment-grade wine with the potential to increase in value over time.

Investing in Fine Wine to Diversify and De-Risk Your Portfolio

Cuffley fine wine investments are attractive to those who feel that the Cuffley wine market offers a promising future. Younger and younger investors are looking to wine investing as a way to diversify their portfolio – the average buyer at a wine auction is currently in their 40s (previously, the average age was around 60). More people are interested in buying and drinking fine wine, which could offer opportunities for those looking to make money off a growing market.

Additionally, wine investing and finding the best wine investments can be attractive to someone who simply loves wine and wants to add it to their investment portfolio as an alternative asset.

It’s important to note that, in many cases, wine is considered a long-term investment and lacks the liquidity of other investments that can quickly be turned back into cash. You can expect to hold your Cuffley wine investments for at least three years before you begin to see better results.

Wine investing offers profitable potential returns – over the last 15 years, wine has offered annualized returns of 13.6%. Cuffley wine investing is considered less volatile than real estate investing.

The quality and scarcity of fine wine appreciates over time – and so does its value. This is the underlying principle of investing in wine.

You buy bottles of wine, and store them to sell them at a higher price later on.

Even though you physically own the bottles of wine you bought it is recommended that you store them professionally in specialised facilities until you sell them. This way your valuable wines are safe and in perfect condition until you wish to turn a profit. As a wine investment company, we will buy, store and sell your wines for you, without you having to take on any of the headaches of having to build your own wine cellar.

A Simple Example

10,000 cases produced
Wine matures with age and quality improves
Wine is consumed and reduces the supply
Remaining cases become more valuable

Investing in fine wine is both enjoyable and very rewarding, providing the opportunity to explore, understand and own some of the finest luxury products in the world. Fine wine’s historical performance has led many investors to view it as a tangible, alternative asset that can be used to diversify an investment portfolio, delivering stability and growth that can de-risk an investment strategy and protect wealth.

Bordeaux Investment Wines

The global influence of the Bordeaux region in the fine wine investment market remains unsurpassed, with the top properties contributing near £2bn annually. Wine has been traded in the region since the 12th century and the high grade investment wine produced here today remains the cornerstone of the industry. Bordeaux Wines currently account for around 80% of fine wine traded worldwide.

The best Bordeaux wines continue to dominate fine wine auctions and their names, with their noble lineages and international cachet remain essential currency for anyone involved in investing in wine.

The Liv-ex 50 index, which tracks the last ten vintages of the five First Growth wines (Lafite Rothschild, Mouton Rothschild, Latour, Margaux & Haut Brion) has increased by nearly 300% since its inception in 2000. The Liv-ex 50 index is the industry benchmark and is what many financial institutions will use to monitor the performance of fine wine. Although this view of the index can quite often dictate the global opinion of the market, it is important to understand that this is a snapshot of the overall market. With the market broadening now more than ever, diversification across more than just these five wines is imperative.

How Can You Not Love Bordeaux Wine?

Bordeaux is a magical place; it has it all! The terroir, history and talent, the grapes, the popularity and the prestige. And although competition is fierce in today’s wine world, there’s always room for the classics, and few wine regions are as classic as Bordeaux.

What makes Bordeaux wine so popular? For red, white and even sweet wine, Bordeaux is just a classic wine style with history and tradition, and quality is a given. Just like we love classic cars and old movies, there’s something Bordeaux has that other regions don’t — Bordeaux is timeless.

 

Wine Investing Cuffley

Benefits of Wine Investing Cuffley

Performance

Fine wine has a track record of delivering stable growth and strong returns that has outperformed financial markets and commodities over the long term. Performance is not directly correlated to more volatile financial markets and, as a tangible asset with a finite supply, fine wine can protect wealth during periods of economic uncertainty as clearly demonstrated with Covid-19.

When the pandemic hit the world markets in March 2020, fine wine held steady. Liv-ex saw its benchmarks maintain positive growth compared to financial markets’ extreme volatility. Fine wine indices maintained positive growth with record volumes and values traded on Liv-ex in the second half of 2020, where equities and other assets continued to suffer further losses and volatility.