How long do I need to invest?
While certain wines have shown considerable short term gains in recent years, we recommend that you consider your wine investment as a medium term investment of at least 3-5 years.
Are there any risks?
All investments carry risk and fine wine is no exception. Although market trends in wine investment have been positive in recent years, prices may go down as well as up. Fine wine investment prices vary so always check that you are paying a fair entry price.
How do I know I have the wine you have sold me?
This is very important to us. Upon purchasing the wine you receive a certificate stating where the wine is and how it is held to your order. We also enlist an independent firm of accountants to provide an annual audit of all wines sold. In the case of buying ‘en primeur’ clients will receive a Certificate of Allocation which will be replaced by the Certificate of Ownership once the wine is in physical form.
What about storage?
We include 3 years storage at leading bonded warehouse London City Bond’s Vinotheque facility. Your wine is held in a Wine Asset account with you as a sub account holder. Correct storage is important for demonstrating that the wine has good provenance and poor storage may affect the value of your investment.
Can I store my wine?
Wine Asset recommends that wines purchased for investment remain in bonded storage for VAT purposes. Wine Asset will arrange the storage of any wine purchased from Wine Asset in a sub account in your name as part of the management fee. If you already have a private bonded account, Wine Asset can arrange the transfer of any purchases into your own account in bond, however, there may be a handling fee for such transfers.
Is there any tax payable on profits?
In principle fine wine qualifies as a ‘wasting chattel’ and if sold ‘in bond’ is generally exempt from Duty, VAT and Capital Gains Tax.
How do I sell my wine?
Wine Asset will either offer a fair market price for the wine or undertake to broker the wine into the market (a target price may be set, but Wine Asset cannot be liable to guarantee the level of return). Please note that while Wine Asset does not charge any additional commission for brokering client wine. Wine Asset clients are also free to sell their investment wines at auction or through any leading wine merchant. It is recommended that the commission charges being made by the seller are checked.
Experts within the wine industry reckon the best investors can see returns of up to 30% a year from some bottles.
Wine as part of a diversified portfolio is likely to lead to greater overall stability for returns.
The price of fine wine has soared in recent years, boosted by a shortage of supply and mushrooming demand.
