Wine investment is growing in popularity and it is not hard to see why. Many investors are turning away from the stock market and looking at alternative investments such as wine.
Wine has proved to be less volatile than stocks and shares over the last 20 years and has outperformed a number of equity and income indices which include the FTSE 100.
Long term investors with a well chosen portfolio of wine should be looking at annualised returns of between 9 to 12% per annum.
Another advantage is that wine is classed as a wasting asset so normally does not attract Capital gains Tax.
The demand for quality wine is increasing, but the supply of traditional vintages is extremely limited.
As with any investment, prices can go up as well as down, it is therefore vital to select the right wine from the best names and the best vintages to ensure maximum growth potential.
Investing in wine used to be the preserve of a niche sector of the investment market, however with the recent volatility in the financial markets many more invertors are looking to diversify into alternative investments.
Wine investments can produced excellent returns for investors if investing in the right wines.
