A lot has happened in the wine investment market over the last ten years, and the scene has changed drastically. The hegemony of Bordeaux has seen its end, the portfolios of successful investors nowadays are diversified with wines coming from various countries. So what is the future of wine investment? Is Bordeaux having a come back or will diversification increase, bringing more countries to the scene?
Daniel Carnio AIWS commented: ‘With other regions playing a significant role in the industry, now is an exciting time for any new investor looking for higher returns in a more stable market. Diversification is the key.’
What is certain so far is that wine investment is attracting a lot of people. Many investors appreciate the great benefits offered from this asset and are willing to move their savings from ISAs and stocks. The Wine market offers safe returns with little volatility and is not directly influenced by global markets, meaning that sooner or later your wine is consumed no matter what is happening in the global panorama.
On top of this, investors benefit from no VAT or duty taxes.
Having appreciated all these benefits, investors nowadays look for wines that offer great return and are easily tradable. Bordeaux is still playing the biggest part, and in 2015 we are probably going to see if it is actually making a come back from the 2011 crisis or if we will have to wait another year.
What we are experiencing in the market is a great interest shifting from Bordeaux to other areas such as Burgundy, Italy, Portugal, USA and Australia.
From Liv-ex (wine exchange platform) in the last 5 years indices for Burgundy and Italy are showing respectively a 45.77% and 22.80% increase attracting a lot of collectors and investors.
For investors looking at alternative opportunities, we recognize that it is the best time for wine investment. The market has matured bringing to the scene a more diversified and complete panorama, safer for investors offering more stability, but still showing good returns.
Furthermore 2015 will show the development of the market bringing more diversification and many attractive opportunities.
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