The Financial Eco System
A TASTER: The
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Fine Wine prices have risen sharply over recent years and have outperformed virtually every other asset class, and all profits are exempt from Capital Gains Tax. Prices are uncorrelated to the wider markets and have shown strong gains even at times when major stock markets have been in decline. Wine investments can help diversify an investment strategy, and this is considered essential following the BREXIT vote.
The Opportunity
This UK based, International wine supplier have seen prices of their Fine Wines increase 173% over an 8 year period. They concentrate on sourcing a range of mid price range wines, which are being consumed en-masse by wine lovers throughout the world. Demand is rapidly outweighing supply, and this has led to a dramatic increase in prices.
The Story So Far
As a commodity becomes rarer, and demand outweighs supply, there is a sharp increase in prices. Affluent Chinese and Russians drink expensive imported wines which are a reflection of social status and success – especially fine imported French wines. They are mainly interested in red wine because of the symbolism of the colour in their cultures.
The Prognosis
The emergence of the Chinese and Russian middle-classes has transformed the economics and culture of Bordeaux, and its wines are finding new markets–and ever higher prices—especially in Russia, Shanghai, Beijing, and Hong Kong. The trend looks set to continue, and collectors buying into these wines look set to enjoy healthy tax-free returns for many years to come.
The numbers
166,000,000
The number of bottles of French red wine consumed by China in 2015 – bigger consumers than the French themselves!
173%
The market performance of Fine Wine prices between June 2005 and February 2013
£20,000
The average amount invested by new clients into a Fine Wine portfolio
Do you look for capital growth when you invest and are you open to learning more about this investment?
We only work companies who adopt good business practice. The investment provider will need to call you to confirm that the opportunity is suitable and will then be able to send you a comprehensive brochure and a Free DVD, clearly explaining how wine investments work. They will be also available to answer any questions you have welcome your feedback.