The best investments are those that combine both high returns and low volatility (thereby minimising risk). When considering an alternative investment such as wine, it is also important that the asset demonstrates limited correlation with mainstream assets if it is going to act as a useful portfolio diversification tool.
Fine Wine Investment offers steady, long term returns for our clients. Don’t be misled that Fine Wine Investments will create a ‘Quick-buck’ – nor will you experience extreme volatility as is now the norm in the global exchanges. The Fine Wine market allows wealth to be stored and increase over time. Time horizons should be set for a minimum of 5yrs – wine values increase with demand against diminishing supplies.
Today’s Fine Wine market: US$4 billion per year (Fourfold increase since 2004) – The Fine Wine Investment market is growing: there is continuing demand from traditional markets in North America as well as Europe, however the real story is Asia and emerging economies. Demand is clearly growing and outstripping supply; wine imports to Hong Kong alone (Asia’s hub) rose 57% in 2013 – compared to 2010. This figure represents $940m and highlights the rapid growth of the market since the duty on wine was abolished in February 2008.
Market Growth: As demand continues to grow, now more than ever on a global-level, it’s the ‘new’ markets where huge wealth has emerged and passion for consumable products such as wine will drive demand against the limited supplies already strained from its traditional customer base.
Transparency is key: This has been the backbone for our success – and for our clients. Twaites & Jones hold a FULL trading licence with Liv-ex (London International Vintners Exchange); Launched in March 2000, the global ‘exchange’ allows vetted members to trade from 35 different countries across six continents with 100% transparency: Liv-ex (London International Vintners Exchange) – The role of a Fine Wine Exchange