Investing in top-class Bordeaux wines has delivered greater returns and less volatility than investing in equity markets...
Recently, views are changing towards alternative investments such as gold or wine.
We could almost compare this movement with collectors investing in art. A rather safe investment, which is generally bought with the aim to sell and make a good profit. Some are saying that art is the safest sector to invest in.
Now, wine investment is joining in as well.
...Wine prices have been driven up recently by Chinese investors entering the market, while over the past 10 years keen US and Asian buyers have created a strong supply/demand ratio...
Of course, it is important to pick the right bottles. It is almost necessary to be an expert or more precisely an oenologue. Otherwise, you got the alternative to get advice about the wine market and plan what's best for you and your savings.
A few Chinese investors are after such investments and prices could increase rapidly, due to the demand. To be honest, it seems that the Chinese market is also brand-driven rather than taste-driven.
A good thing to know is that wine prices fell more than 15%, although this is less than the falls of more than 30% suffered by stock markets.
So, if you are choosing to place your cash on some precious bottles make sure that your adviser is able toshow you a demonstrable track record of solid returns and ideally a complementary background in financial services.
Finally, it is not all about putting money on a Premier Cru - for generally 3 years. There is more to organise too. You will have to pay storage and insurance charges, and with some merchants, dealing charges.
Remember, that when if you decide to sell; you may not be able to do so as quickly as you would with shares or bonds.
For more information contact or visit RBSCoutts site.
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