The fine wine market boasts a very healthy track record, showing steady long-term growth while being utilised as a means of diversification, helping fortify investment portfolios for decades. A study six years ago, undertaken by a well-known wealth management firm, found that over a quarter of ‘high net worth’ individuals had a fine wine collection.
“I believe more and more people around the world want to drink, enjoy, and collect these wines, so prices have to continue to increase over the long term.”
Jamie Ritchie, Worldwide head of Sotheby’s Wine – Robb Report, Feb 2019
Considering the amount of financial turbulence during the period, many investors have turned to fine wine as a store of value and continue to do so with potentially more uncertain times ahead.
With the top 100 wines showing remarkably consistent returns over the last 25 years and remaining exempt of Capital Gains Tax, wine is rightly regarded as one of the leading alternative asset classes and therefore ideal for diversification.
“When stocks are underperforming, the security of holding something physical becomes increasingly appealing”
Whatinvestment.co.uk, May 2019
