Frequently asked questions

Why do fine wines go up in value?

Fine wine matures and improves with age. A limited amount is produced every year and as bottles are consumed, the supply of the wine becomes smaller. As supply diminishes, it cannot meet demand which continues to rise as the wine matures. Moreover, demand and interest in fine wine is growing around the world and the supply of the top wines cannot be increased.

Do I need to know much about fine wine?

You do not need to have much knowledge in the subject, leave that to your fine wine investment advisor. However, we strongly recommend seeking advice when investing in wine as not all well-known wines are suitable for investment and so it is possible for potential investors to put funds into the wrong type of wines. Always look out for wines that have a score of 90 Robert Parker points and above. These wines are classed as investment grade wines and are more desirable to consumers.

In a nutshell, what are the advantages of wine over other investments?

Finite Product: You are investing in a tangible, improving asset that has a limited annual production but a huge global demand base. The supply of this already limited asset then declines over the years as the wines are consumed.

Tangible Asset: Shares that fall in value are good for nothing, save for selling at a loss. Wines that do not perform financially as well as expected can be consumed and enjoyed.

Tax: You do not have to pay capital-gains tax (CGT) on any profits from wine investments with a total value not exceeding £250,000. Wine is exempt from CGT because it is regarded by the Inland Revenue as a "wasting asset" with a predicted lifespan of less than 50 years.

Performance: There is little doubt that wine has performed very favourably amongst the strongest investments over the past few years. Even in times of macro-economic downturn, wine tends to remain more robust than many other investments.

Inflation Hedge: An inflation hedge is an asset that loses little value in periods of rising prices. Thus, it holds its value and its purchasing power during inflation. This also applies to hyperinflation. An investor expecting inflation will buy this asset to hedge against inflation. In general, tangible assets hedge better than paper assets. Good hedges have a few key properties. One key property of a hedge is that it holds its value. It should lose little value over time. Cars lose value over time. Wine does not. It will continue to appreciate with age.

What sort of wines should I Invest in?

As a rule of thumb, only ever invest in the top wines of Bordeaux and a handful of wines from Burgundy. Whilst other parts of the world make great wines, the global secondary market has limited demand for these, so sticking to the best from Bordeaux is realistically the safest strategy. Only 1% of the world production of wine is classed as investment graded wine. Of that 1%, 90% is Bordeaux red.

Where are the wines stored?

Our wines are stored with London City Bond. Wine is stored in the Vinotheque Building. The massively constructed 19th c. grade II listed building offers the perfect environment for the long term cellarage of fine and maturing wine. In the last two years in excess of £1million has been spent upgrading and enhancing the warehouse to ensure storage conditions and security are second to none.

How do you ensure that my investment is safe?

You are covered for damage or theft for up to £250,000 whilst in Bond.

How long should I hold the investment for?

Vintage Fine Wine Investment is an industry that has consistently proven itself. Fine Wine Investments have proven to be very successful over short (2 years) and medium terms. If you decide for a long term investment,the returns can be astronomical. We advise our clients to hold on to their wine portfolios for a minimum of 24 months.