With minimal correlation during times of uncertainty between fine wines and financial markets, it has become one area to not only offer security but also bring in consistent returns.
This is due to some key factors that have helped top fine wines show a rise in value.
The demand for top products is ever increasing. Along with the founding markets that have helped these wines build their reputations such as London and New York, there are also emerging markets that are now starting to enjoy fine wines. With global wealth increasing, more people are looking to source wines that are produced in these limited volumes. The result is an ever-decreasing stock, as older wines are consumed and more buyers look to purchase the best products available.
“Potential investors are able to enter the market certain that they are purchasing a high quality, highly sought after commodity which, due to limited supply, should see strong value increases in future.”
The Telegraph, 2013
Wine vs Equities
Fine Wine Indices