Basics of Wine Investment

Basics of Wine Investment

Wine is a separate Asset class. Up to now, many people around this world don’t know that Wine is an Asset Class. It’s a Tangible Asset class. Means it has a physical existence. Owning a Wine is exactly same like owning any other Asset class in this world such as stocks, bonds, gold, real estate, mutual funds and businesses.

Vintage Wines appreciate in its value over the time. Like any other Asset class, the theory of Demand and supply also apply here. Means the consumption of fine wine increases day by day and the supply is limited. The supply of some vintage wines is decreasing year by year. This makes Fine and Vintage wine invaluable.

Wine is a precious commodity that is limited on this earth and its demand is increasing day by day. This makes wine an appreciating asset. Investors all around the world invest in wines for Capital Gains.

Liv-ex: 100 Fine Wine Index -

Liv-ex is the index of top 100 fine wines in the world. This index has consistently outperform the major global stock exchange indices even during the time of recession. This shows that Wine is a lucrative investment.

Australia Wine Index -

There is another wine index also – Australia Wine Index. This Index is also the same like Live-ex index.

Wine Investment Funds / Wine Mutual Funds -

There are professionally managed wine mutual funds also. The fund manager of which mainly invest in fine and vintage wines. They invest your capital in fine and vintage wines and preserve those wine portfolios under optimal environmental conditions.

Wine Growth Fund -

Wine Growth Fund is world’s one of the leading wine investment fund which invests investors’ money in wine. This is the only fund which has beaten the Liv-ex 100 index in the year 2007 and 2008. The main Investment objective of Wine Growth Fund is, The Wine Growth Fund is designed to achieve high capital growth by buying and selling Investment Grade Bordeaux Wines at wholesale prices, from various sources including chateaux (wine producers), French negociants and wine merchants.

What is Bordeaux Wines? -

A Bordeaux wine is any wine produced in the Bordeaux region of France. Average vintages produce over 700 million bottles of Bordeaux wine, although in good vintages, this total can exceed over 900 million, ranging from large quantities of everyday table wine, to some of the most expensive and prestigious wines in the world. 88% of wine produced in Bordeaux is red (called 'claret' in Britain), with notable sweet white wines such as Chateau d'Yquem, dry whites, rosé and sparkling wines (Crémant de Bordeaux) all making up the remainder. Bordeaux wine is made by 10,000 producers or châteaux from the grapes of 13,000 grape growers. There are 57 appellations of Bordeaux wine.

Thus, Wine is the Asset class of Rich people. Rich invest in this exotic asset class for higher growth of their money.