Why invest into wines?
A well-diversified portfolio is essential for managing risk and countering periods of volatility in the market. A traditional portfolio includes a mix of stocks and bonds, but there are a host of alternative investment possibilities to choose from.
Wine investment is one of them. Similar to investing in fine art or antique cars, wine investments center on the acquisition of a tangible asset whose value is expected to appreciate over time. In this case, you're purchasing and storing bottles of wine, in anticipation of selling them at a higher price point later.
Fine wine investment
Cult Wines, which trades wine on behalf of private investors, is one of the beneficiaries. The London-based company has seen the assets it manages surge from £33m in 2016 to £121m this year as investors have been drawn back to the sector.
Here we have the relative performance over six months, a short term time frame by any other than a day-trader yardstick. Hands up all those who foresaw an escalation in trade war tensions three months ago, and did something about it, i.e. buy gold. Of course a magician would have bought oil in March and switched into gold in June, but that’s not the way life is.