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Moncharm Wine Traders tell us why now is the best time to invest in fine wine
By Tempus | 29 May 2024 | Food & Drink, Wealth
Learn with Moncharm Wine Traders how, with so many luxury investment options to choose from, investing in fine wine is the next big thing
As global wealth continues to expand and grow at a rate the world has never seen before, many investors will be asking themselves how they can take advantage of this surge in the upcoming years. Which asset appeals to the wealthiest individuals across the globe yet has supply levels that will fail to keep up with such demand? In fine wine, they may find just that.
You might be wondering: why choose fine wine to diversify your portfolio? The short answer is that, with the right strategy, there is money to be made.
In the past few years alone, a number of high-profile sales have made the headlines, none more so than the one bottle of Domaine Romanee Conti – de la Romanee Conti 1945 that sold for five times the upper estimate at $558,000 in Christie’s Auction house in 2018. Whilst this is the most expensive bottle of wine ever sold at auction, the desire to spend more and more on the world’s most sought-after wines is becoming a regular theme when high net worth individuals butt heads in auction rooms.
In an ever-evolving world, fine wine has also stood the test of time. Despite the boom of big tech companies in the stock market in recent years and now the surge in interest in AI companies, fine wine has remained more than competitive in terms of growth with the Liv-ex 1000, the broadest index which tracks the fine wine market, achieving annualised returns of 15.45% over the past 20 years.
However, in 2023 there was a cooling off period due to profit taking and according to Matthew Knight, head of private client investment at Moncharm Wine Traders, this could create the best buying opportunity in years. ‘’Investment graded wines are offering a fantastic entry point for new collectors to establish their first holdings, after all nobody wants to buy the top of the market. For investors with medium-long term time horizons, being able to buy Mouton and Lafite Rothschild at their current levels is a very attractive proposition indeed.’’
Established in 2010 and based in the heart of Victoria, London, Moncharm Wine Traders specialise in the buying, storing and selling of some of the world’s most sought-after brands, providing a seamless service connecting wine lovers and investors to the exclusive world of fine wine collecting.
Invest in your next — or first — bottle of fine wine with Moncharm Wine Traders here and by downloading their free investment guide today.