If you are looking to invest for the first time, or even if you are a seasoned investor with a diverse investment portfolio, an investment in fine wine is a fantastic solution to make the most of your savings. An investment in fine wine may be a daunting prospect, but if you use a reputable fine wine investment company like Global Wine Exchange, then your very first investment into the fine wine market will be a breeze.
Why invest in fine wine?
Many investors new to the market of fine wine investment may question why fine wine is such an attractive prospect. It is something quite different from investing in the regular stocks and shares associated with traditional investments. In fact, wine investment has been one of the most popular investments of 2018, with many people shying away from currency or cash-based investments, fearing how the impending divorce from Europe will affect their finances.
An investment in fine wine is practically Brexit-proof, or at least as Brexit-proof as anything can be. This is because the fine wine market is largely driven by a wealthy Asian market, where red wine, in particular, is in constant demand due to its association with prosperity and the colour red symbolising good luck and growing wealth. This makes red wine a high-value asset in countries like China, where it is a sought-after commodity.
The fact that the pound sterling is particularly weak is also beneficial to an investor in fine wine because the Asian market will ‘buy up’ larger quantities of fine wine stocks from the UK as they are seemingly getting better value for money. It is for this reason that investment in fine wine is a particularly good idea for a new investor in the current UK economic climate.
How will my investment in fine wine affect my taxes?
Any beginner to investment will, of course, be concerned about the potential impact of their investment on their tax obligations. Fine wine is actually seen as a “wasting asset.” This means that the UK government view fine wine as an asset that will spoil or perish within a 50 year period. While this can be true of fine wine, it means that the government will tax you less on any returns you yield from your investment. So for example, should you pass away before you have sold on your fine wine your family will not have to pay any inheritance tax on the investment, which may make it a particularly valuable asset for anyone who is concerned about safeguarding their children’s inheritance. In most cases, an investment in fine wine is also likely to be exempt from Capital Gains Tax on any profits under £250,000.
Where do I keep my fine wine investment?
Providing a new investor is able to invest a minimum of £10,000 into their fine wine, the grade quality wine is then eligible for storage in a government bonded warehouse. This means that your investment wine is stored in optimum condition and is fully insured and safeguarded against any spoiling. £10,000+ worth of grade quality wine can be a substantial quantity, so this is an excellent solution for anyone who is concerned about the proper storage of their investment.
Many first time investors in fine wine have visions of filling their cellars with racks of dusty bottles, but this simply isn’t the case. Other alternative investments such as vintage cars or stamps require a lot more maintenance than an investment in fine wine, so if you are looking for a stress-free way to invest in a well-known physical asset without having to store it yourself then this is a great solution.
How do I know that my savings have been legitimately invested in fine wine?
This is, of course, a concern for any new investor who is unfamiliar with the fine wine investment market. Traditional investments are easy to track, and other alternative investments are physically obvious, such as gold bullion. With your fine wine locked away safely in government bonded warehouses, it is only natural to worry that you’ve been scammed. Of course, there will always be fraudulent individuals posing as fine wine experts, but when you use a reputable company like Global Wine Exchange with over a decade of industry experience, you can rest assured that your investment is in safe hands.
We operate in full transparency, offering all of our clients a personal login where they can track their investment 24/7, where ever they are in the world. We also provide all of our clients (regardless of budget or portfolio size) their own portfolio manager who is at the end of the phone whenever they want to have a chat about their options, worries or concerns. We are also going to start offering wine tastings so that you know exactly what you are investing your savings in and what is coming to the fine wine market for you to invest in the near future.
Any new investor can also research the fine wine market themselves using the Liv-Ex Fine Wine Index 100, which shows the current state of the fine wine markets and any emerging patterns or trends. This may seem daunting, but at Global Wine Exchange we are happy to talk you through your fine wine investment options.
In essence, an investment in fine wine does not have to be difficult in any way for a beginner to the fine wine market. At Global Wine Exchange, we have years of niche industry expertise to share with you, and we are passionate about our love of the fine wine market. As a client-focused company, we take pride in supporting our clients, however experienced, and we look forward to supporting you in your future investments in fine wine.
To speak with one of our experienced professional wine investment consultants fill out the contact form below or telephone +44 (0) 203 086 7111