If you are considering investing in fine wine then what better place to get advice from than the experts? We all know that any type of investment can have its risks and investment as a whole can be complicated for beginners, so to help you on your way we have summarised some of the key reasons you should consider fine wine as an investment, from one of London’s best fine wine investment companies, Vin-X .

Vin-X has been praised for its mentality of introducing and educating people about their investments, they believe that investing in fine wine offers several unique elements that cannot be found anywhere else. Here we take a closer look at a few of those reasons:

Improving Assets

We all know there are a variety of assets out there for us to invest in whether it is gold or art – but wine is actually one of the very few assets that actually improves with age! This improvement with age isn’t even down to supply and demand (which of course can help); rather the fact that wines literally improve with age and this is reflected in their increasing prices over time.

Diminishing Supply

Vin-X believe that this is a simple but often overlooked factor in wine investment; the fact that the supply of the wine will never increase. This basically means that as the wine is consumed there becomes less of it and potentially greater demand for it.

Fine wine is a strong investment as there are a variety of taxes that you do not have to pay on it. The government sees it as a degrading asset and therefore it is exempt from capital gains tax, as well as the fact that if you store your wine in a bonded warehouse it is going to be exempt from import duty and VAT.

Unique Supply and Demand

It is expected that the production of fine wines will dwindle due to various factors such as climate change and when this is combined with the ever growing market demand for the product (Chinese demand for wine has rocketed in recent years) it is clear that demand is going to rise dramatically.

The liquidity of the fine wine market means that it is overall a relatively straightforward market. Certain investments such as art can be very difficult to sell and it is often unclear how much they are truly worth. But the fine wine market has sources such as Liv-Ex that provide transparency for investors.

The Wine Speaks For Itself

What we mean by this is the fact that it is the quality of the actual wine that accounts for its price, as opposed to market factors that can cause other investments to fluctuate. The result of this is that the wine is always going to be ‘good’ and will therefore always have some value.

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