Wine Investment

Wine Investment FAQ’s

Why do people talk about investing in wine?

Vintage fine wines are by nature finite. As fine wine is consumed there is less available to the market in that particular vintage, as one cannot simply produce more to satisfy demand. In very basic terms this ought to push prices upwards.
Fine wine itself also improves with bottle-age and this ought to increase its value.
Further, returns generated from the sale of fine wine have not normally been subject to Capital Gains Tax as, historically, wine has been considered a wasting asset.

So it is possible to make money through investing in wine?

Yes, but it is by no means simple and there are a multitude of factors in play. It is often difficult to obtain the top wines and even more tricky to buy them at competitive prices. The sale of wine investments needs to be factored in as markets can be illiquid (no pun intended) and transaction charges (e.g broker or auction fees) can be high.
The overall return on any investment is also affected by general economic conditions, critical comment (notably by US wine critic, Robert Parker) and storage costs. In common with many assets, values can go up and down.

Anything else about wine investment that I should know?

Yes. Comparisons between returns on wine and the performance of financial instruments can be simplistic, but there is plenty of information available about past performance or current pricing.
The wine market is unregulated so always deal with an established merchant and, if you want specific financial or tax advice, speak to a registered financial advisor.

Why might I invest in wine then?

Because you can build a cellar of superb wine for the medium to long term that will provide huge enjoyment and may increase in value.

What should I do if I am interested?

If you’d like to start out, we would suggest that you read up our Vintage Portfolio service or contact us on sales@yapp.co.uk or vintage.portfolio@yapp.co.uk if you have any questions.