Benjamin Franklin said: "Wine makes daily living easier, less hurried, with fewer tensions and more tolerance." His comments go some way to appreciating the pleasure fine wines can bring to diverse portfolios.
Since 2004, wine has yielded a return of 247 per cent (an annual rate of more than 8 per cent) and the fine wine market worth some $5bn-$6bn per year globally has consistently outperformed other financial instruments, making it an attractive option for a wide range of investors. The global marketplace for the trade, Liv-ex (London International Vintners Exchange) has reported the market has remained relatively stable during the Coronavirus pandemic.
Wine investors see the return on their investment by exploiting supply and demand. While huge quantities are produced each year, not all wine is created equal. Great vintages and desirable bottles from the likes of Bordeaux and Burgundy are being acquired all the time – a full case in its original packaging is more likely to bring a higher profit - which leaves dwindling amounts available. The decreasing supply leads to increased demand which pushes up prices, and as many wines improve with age, there are further increases on demand giving collectors an opportunity to make a profitable sale. Investment-grade wines are prized for their brand, vintage quality and availability together with scores from critics. Alongside the famous French vineyards, there has been a strong demand for Champagne and northern Italian wines in recent years.
Seasoned collectors may be able to identify lucrative buying opportunities, but many will engage the services of a wine investment company who determine which wines are in line for a price growth and represent the strongest investment potential.
Due to the complexity of managing specialist assets, ILS World is experienced in partnering and working in collaboration with external accredited experts to ensure we provide clients with the best advice.
Our committed and qualified specialists provide practical advice and have a can-do attitude. We have the skills to work alongside acknowledged industry professionals addressing acquisition, handling, storage, insurance and the sale of collectible wines.
Why Choose ILS World
As a leading provider of independent fiduciary services to professional advisors, corporate groups, private and digital clients, we are here to help achieve your financial goals.
At ILS World, we don’t restrict ourselves, we like to go beyond the borders. That is why we operate globally. You will find our offices in Isle of Man, British Virgin Islands, Hong Kong, and Portugal.