1. Proven track record
The last 30 years are proof that fine wine is one of the best performing assets, with a compound annual growth rate of 10%*.
* Liv-Ex investables index 1988
2. A 'real' asset, uncorrelated to the market
Fine wine tends to appreciate in line with inflation whilst also smoothing out markets volatility due to having low correlation to traditional investments.
3. Tangible asset for long-term investment
Wine has intrinsic value that makes it suitable for preserving wealth as a medium to long-term investment.
4. Increasing demand
Globally, due to new emerging economies, people drink more fine wine than ever before. Combined with reduced supply, this makes wine prices go up.
5. Limited supply
Fine wine production is controlled by law. What’s more, production methods, weather conditions and geographic constraints also influence quantities. Together, these parameters contribute to the scarcity of fine wine.