The wine market has been fairly resilient when compared with more traditional investment sectors, and it’s a good time to consider buying wine not just to drink, but to make money from, too. Here, the team from Berry Bros & Rudd explain why, and highlight some of the bottles to keep an eye out for.
The reason for the wine investment market’s resilience is relatively easy to explain: fine wine is a tangible asset; it’s a luxury product that we aspire to own, consume and know more about. For many it’s far more useful than gold, and easier to enjoy than art.
Moreover, demand and interest in fine wine is growing around the world and supply of the top wines cannot be increased. A limited amount is produced every year and as bottles are consumed the supply of the wine becomes smaller. As supply diminishes, demand generally rises as the wine matures. Limited supply makes wine more covetable, and therefore a sound investment.
On a practical level, the advantages of wine investing are quite straightforward: wine is an easily transferable asset, plus there is an established fine wine market and a thriving auction market in place. Continuing the practical side of wine investment, investing in wine is relatively transparent: the only additional cost to the wine is an annual insurance and storage fee – at Berry Bros & Rudd this is currently £1 per bottle per year.
What is great about wine investment is that because it is a tangible product, it will always be worth something. If your investment does not perform financially as well as expected, it can be consumed and enjoyed – the same cannot be said for more nebulous investments like a share certificate for example.
For more information on how you can start building your dream cellar, contact the Fine Wine Team at Berry Bros & Rudd. See more at bbr.com