LOW LEVELS OF RISK AND STABLE RETURNS
As it has been proven, wine investments are consistently outperforming traditional investments such as stocks/shares and commodities with higher returns. Wine as an investment has traditionally been associated with low levels of risk and stable returns thanks to its unique characteristics as an asset.
HEALTHY SUPPLY AND DEMAND CHARACTERISTICS
The handful of Bordeaux and Burgundy estates (which are considered investment grade wines) produce wine in relatively small quantities, which ultimately limits supply every harvest and diminishes as a consequence of consumption. Demand on the other hand, particularly for attractive estates, tends to outstrip supply. This increasing demand from traditional wine consumers such as Europe and the US and increasingly from emerging markets such as the BRICs inflict price pressure over time.
HEDGE AGAINST OTHER FINANCIAL SECURITIES
It has been proven as an outstanding asset to hedge against other financial securities. Whether your portfolio entails equities, bonds, properties or commodities, a well-diversified portfolio containing fine wine offers maximum risk-adjusted returns.
TANGIBLE ASSET THAT IMPROVES WITH AGE
The other unique characteristic of fine wine as an asset is its quality improvement with age. When these wines reach maturity and approach optimum drinking, they become more desirable and therefore more valuable. Additionally, although most wine investors enjoy high returns on investments, there always remain the possibility of drinking your own stock as the odds are slim that you would have been able to purchase wine at a price as attractive as a wine investment company (while storing it in optimum environment).
TAX FREE INVESTMENT
Another particular interesting aspect of investing in wine is its tax free status since it is regarded as a wasting asset and thereby doesn’t attract Capital Gains Tax; if you keep the wine in bond, you also avoid paying VAT and Duty. The Capital Gain Tax exemption is for UK & EU residents and will depend on your tax situation so we advise to also speak with your tax lawyer.
MARKET KNOWLEDGE
You will hopefully enjoy expanding your wine knowledge and share with your friends your new and exciting investment. You will find all the information of your portfolio on our online investment platform with your member login, market information through our newsletters and additional interesting information on our blog.
Website: https://cwinex.io/
