Vintage wine outperformed shares and property, offers 900 percent return
March 9th, 2010 | Published in e Club
Are you looking for a high return investment options? Why donâ??t you consider vintage wines?
According to the Liv-ex Fine Wine Investable Index, the best performer was Lafite Rothschild 1982, which cost £2,613 for a case of 12 bottles at the beginning of 2000 and sold at the end of last month for £25,500, a return of 876%, it means the investment return on the red wine from Bordeaux is greater than that achieved by investors in the stock market, property, oil, stamps and fine art, according to the London International Vintners Exchange.
The underlying supply and demand dynamics reinforce the attractive qualities of wine as an investment.
The quantity of any given wine from any given vintage can only decrease over time as it is consumed. Moreover, and uniquely, while supply is decreasing, demand is increasing because as fine wine matures it actually improves. Demand for fine wine is now global, encompassing both the traditional markets of Europe and North America, and the newer markets such as Russia and the Far East. As the emerging economies become wealthier, the number of consumers grows. With the decreasing supply of each given wine and the increasing demand as both the quality improves and the number of consumers increases, prices should rise.
James Miles, director of Liv-ex, said the fine wine market has transformed in the past decade, with global turnover increasing from under $1 billion a year to more than $3 billion. And he insisted: â??The Noughties have also seen fine wine move from being a niche investment for gentlemen into one that is considered increasingly mainstream by the investment community.â?
If you are a serious investor who is looking for a solid area of growth or to simply diversify your investment portfolio, Premier Red Fine Wines will be happy to offer you a free consultancy. Premier Red Fine Wines focus is providing our clients with a personalized strategy.
Enzo Giannotta runs Premier Red (PR) Fine Wines who have a simple ethos, to ensure that they use all the tools at their disposal to the very best of their ability.
The market for Fine Wines has been around for centuries. The turn of this century however has seen it grow into something that many, both within the industry, and spectators alike felt might not be achievable.
http://prfinewine.com