There are many advantages that wine investments have over traditional investments such as stocks, gold and other luxury commodities. British based wine consultant and broker, UKV PLC has published an article that lays out the numerous benefits that investing in wine provides. Below you can discover the advantages of wine investing and find out how to purchase fine wine for your portfolio through UKV PLC.
According to UKV PLC, luxury wines are a safer and more profitable investment than in gold, silver, stocks and fine art. The luxury wine market is far less volatile says UKV PLC. It is steady and prices increase as time passes. Meanwhile the price for gold, fine art and other precious metals can fluctuate dramatically over the years, if not daily.
With a wine investment you have much more peace of mind. A luxury wine will almost never drop in value as time passes. In fact, the older the wine is, the more valued it becomes. As the stock of a certain production of wine gets depleted this also raises the prices of existing stocks. This is why UKV PLC believes that fine wines are some of the most safest profitable investments one can make.
Savings account rates are at an all time low right now. The bond market fares little better. Even if you invest in stocks or more risky hedge funds, the returns you will see are probably not going to get near the returns for wine. The returns for investments in luxury wines often average around the 12-15% margin. You can consider fine wines as a high return investment.
UKV PLC suggests that in order to get the get the highest return on your investment, that you should only invest in luxury brands of wine that have a strong and growing demand. They advise to avoid cheap bottles of wines and wines that are not very popular.
Another reason why wine is such a good investment, is that that the wine market has been unaffected by Brexit. In fact, since the UK voted to leave the EU, wine investments have increased in value by about 20%. The current economic conditions are a great opportunity to invest in wine.
UKV PLC Info: ukvplc.com/brokerage