Wine Investments

For some, wine isn't just a drink. It can be a good investment on which you can see great returns. The demand for fine wine has rocketed in the last 20 years. Prices for fine wine has followed suit and has increased enormously over the last two decades. Wine can, and often has, outperformed the FTSE 100 and the Dow Jones, offering significant returns. Fine wine is a long-term investment (think: years). Savvy wine investors understand that in order to see massive returns they need to flex a little patience.

This is down to the laws of supply and demand. These simple laws contribute to fine wine’s consistent performance as one of the best performing alternative assets. Supply – Each wine vintage is unique. Once it’s produced, that’s it. Another bottle cannot be made. In fact, the supply will only decrease as people consume the wine over time. Demand – Because most people buy wine when it’s ready to consume, consumers will pay a premium for fine wine. That makes wine a “buy low, sell high” asset.

Prestige – Prestige is fuel to demand’s fire. It’s why legendary estates like Domaine Leroy and Domaine de la Romanée-Conti command $30,000+ per bottle.