Wine Investment of some form has been around for many years. People used to sell a case here and there to fund the growth of their cellar. However, in the past few years it has become a much more profitable market with many more investors. The emergence of interest from new markets, particularly Asia, has made investing in wine extremely profitable.
Wine is more transparent than other investments. It is a finite product that improves with age and becomes scarcer as it is consumed. Unlike a share certificate, it has an intrinsic value as a quality luxury product.
What to Buy: We will advise you to purchase the best wines from the best vintages at the best possible prices. These wines have the most established resale market and will be trophy wines in years to come, which will attract the highest prices.
Investment Term: Despite its nature, wine is less liquid than the stock market. You should be prepared to invest your money for a minimum period of 7 years and perhaps up to 10. That being said, some clients have made money in a shorter time period.
Returns: As with any investment, the value of your wine can rise as well as fall. If taken over a 10 year period, we have seen an average return of about 15% per annum. However, we have also seen some investors accrue significantly more than this in a shorter period of time.
Provenance: As provenance is essential to resale, wine storage is paramount. We will only recommend wine that is In Bond. This ensures that the case has not left the confines of a temperature controlled warehouse. A wine which has been privately stored or a case which has been split is of much lesser value.
Tax Efficiency: This is one of the major reasons that people are attracted to investing in wine. Aside from avoiding duty and VAT, some wine is not liable Capital Gains Tax. For full details on this, it is always best to speak to a qualified Financial Advisor.
At Richard Dawes Fine Wine we will create a bespoke portfolio directly inline with your intended budget and investment time frame.
Richard Dawes: We operate predominantly as a broker, utilising our wide network of suppliers in the UK and throughout Europe. Due to this we aim to offer extremely competitive market pricing and are not tied to specific stock holdings. We provide a level of service and advice that we would like to receive ourselves and are interested in building long term relationships with clients. We are not Investment Advisors, but are well qualified to advise on the wine market in general and will make suggestions based on historical growth.
Storage: Your wine will be stored at Eton Park (formerly Vinotheque), which is one of the most reputable wine storage facilities in the country. The wines remain here until you come to sell them. The wines are bought, stored and sold ‘under bond’ which means that you never pay the duty and VAT. Storage costs £12.00 per case per year (excluding VAT). This includes insurance at replacement market value and the wine is stored under your own name, rather than ours.
Charges: Aside from storage, there are no other annual charges for you to consider. When it comes to re-sale, there is a 10% brokerage fee on the final sales price. This is the industry standard.
Selling: We can advise you on the best timing on when to realise your investment. When you come to sell, we can either make you an offer or broker the wine for you. You can also sell to another merchant. If they have a Vinotheque account this will be free, otherwise we will charge you the delivery fee to their bonded warehouse at cost price.
Investment Amount: We suggest that you invest a minimum of £10,000, but given the high prices of the top wines, the greatest returns are seen by those who invest more than this. As with most investments the more you put in, the more you stand to gain.
At Richard Dawes Fine Wine we advise on and manage a range of portfolios valued between £10,000 and £5 million. Whether you are a Private individual, a collective, or a Family Office we will start, build and maintain a tailored portfolio of any size.
Bespoke Portfolio: Your investment will be personally customised and managed by our experienced team. A portfolio can be created for novices and practised investors alike and we will provide as much, or as little, guidance as is needed.
Valuation: We will provide an on-demand valuation service to enable you to track how your investment has developed. If you are looking to realise your investment, we will present firm buy/broking prices.
When to Sell: We will advise when to sell from your portfolio as well as add to it. Our customers’ reserves are an integral source of our stock supply, therefore when it comes to selling; we will be able to provide you with excellent market exposure.