Learn More About fine Wine

 

Historically Fine Wines from Bordeaux and Burgundy in France have arguably held crown for the being the worlds greatest Fine Wine producers. Although this for many is still true, other countries and regions are for many level in quality and reputation to the more traditional Chateaux.

This doesn't mean the popularity of the top tier of Chateaux is any less. For many, due to the prices of certain Fine Wines wine being 1000% higher than 20yrs ago it has meant, that many buyers now feel priced out of the option to buy certain wines like Lafite Rothschild, Chateau Latour, Chateau Petrus. This has led many buyers moving down through the lower graded wines, searching for a similar quality of wine to drink or to collect.

 

And with drinkers and collectors looking at a broader range of options for the varying palate, wines from across the world are now being traded on a more frequent basis. And with the worlds ability to transport these rare and collectible gems in a more efficient manner has meant than the Fine Wines now being sent are reaching all areas of the world.

And with no increase in production for many producers combined with an increase in new wealth has contributed to such a change in prices over the decades.

 
Fine wine prices have risen an average of 14.9% per year over the last 20 years.
— CNBC News Channel
 
 

Why fine wine?


The main reason that fine wine is such an attractive purchase is firstly that it is a tangible asset: a highly desirable luxury product.

When compared to the prices of similar commodities, it is easy to understand why people are choosing the diminishing supply of fine wine as an asset. If you are passionate about wine, or simply just interested in owning a product of luxury, then fine wine is a great choice.

 
Wine not only managed to weather the recession and the stock market crash, it thrived in comparison with the others.
— Jeremy Gaunt - Reuters
 

Why now?


One of the main reasons that people approach us is as a source of diversification of a portfolio. Varying varieties of fine wines available across the world, changing popularity and varying quality of vintages all change the desirability of a wine.

The primary drivers are the same now as they were almost a century ago. The top tier of wines are restricted in regard to the levels of production they can make in any given year, and this results in a supply curve which is perfectly elastic. When this is combined with the increasing levels of demand for this product, it places an intensifying strain on price. the market currently has certain wines below the price of only a few years ago, making them an attractive purchase.

Wine is commonly regarded as offering portfolio protection to the owner. This is primarily due to the high levels of consistency offered over the long term of the market. When compared to the global equities market, wine has performed significantly better. The ‘recession proof’ characteristics the wine market offers are a far cry from the usual risk & return ratio seen from other markets. Always carry research to ensure you are buying the correct wine for your needs.