Chateau Pavie | Bordeaux 2018 En Primeurs

Benefits of fine wine investing


Throughout its life cycle, as your Fine Wine increases in value, a bonus is that you wont have to pay any hidden taxes on the profits you make. 

Fine Wines are often wonderful to drink and enjoy as they age gracefully, though the chemical nature of wine suggests that it is very slowly deteriorating. It’s considered that as it’s ‘predictable life’ is less than 50 years, wine can be legally considered a ‘Wasting Asset’. Any gains made on ‘Wasting Assets’ aren’t liable for any Capital Gains Tax, which is one of the many benefits of Fine Wine Investing.

The wine market consistently outperforms the FTSE100.

That’s a very generalised statement but an interesting consideration. Fine Wine has emerged as the better performing asset class over the past fifteen years. While global equities have been under pressure, Fine Wine has been solid as a rock.

From the data provided to us by Liv-Ex, we’ve seen a value increase over 5 years well above the European FTSE and DAX markets as well as the Asian Hang Seng, while considerably outperforming the American S&P over 2 years.

Longer-term growth benefits are also interesting, nevertheless the performance in the current economic climate is fascinating. Wine proves to be a globally steady proposition with low volatility. This, while faced with double digit decline across many other global markets over the past 12 months.

Wine is a Global Commodity

Wine is enjoyed, discussed, tasted and traded all over the world and not tied to one financial market. Fortunately, as globally minded as we are in the UK, wine is truly more global. 

Corkr Fine Wines are already actively trading Fine Wine all over the world, we can always find a supplier or a buyer in any market. A thirst for Barolo in Beijing may be a more lucrative trend to capitalise on than Latour in London!

What do the Global Markets show us?

Fine Wine is a consistently solid investment in a struggling global market.

Our data analysis and market insight show us that Fine Wines offer a stable, dependable return over the medium to long term when invested in effectively. While there are clearly market fluctuations, we use as much data as possible to underpin our decision making.

We also have a warehouse in Bordeaux, a bonus for all clients

It’s important to us that we keep our logistics efficient and cost effective. Our Bordeaux warehouse gives us the flexibility to buy directly from Chateaux or Négociants, pay them in Euros and store it in France. The benefits for us are to settle any uncertainty around short term exchange rates or currency market fluctuations. 

GEt in touch with us

Interested in Investing in Fine Wine with us?

You can email or call +44 (0)1502 676110.

We’ll talk you through an initial consultation, whether investing as a business or as an individual, we can find the right level of investment for your budget. You are always welcome to come and visit us at our office on the Suffolk Coast, near Southwold.