Best wines for investment
The alcohol produced from the investment is a selected type of wine, which comes mainly from French vineyards in the Bordeaux region or certain of the region Burgundie.
Wine is traded through brokers from London, Hong Kong, Singapore and Chicago. Alcohol boxes stored in English customs. They will be guaranteed to the subsequent purchasers that the beverages will be stored properly.
How much can you earn on your investment in wine and how long does it take to wait for profit?
The amount of investment in wine amounts to a minimum of several thousand dollars The recommended period is a minimum of 2 to 5 years. You can earn from 40 percent up to even five times the capital invested. Though it is safe to talk about 20% profit.
Sometimes it happens that in the meantime some brands can be up to 60 percent more expensive. Angeles wine, the 2008 wine yearbook, increased by almost 23 per cent in just one month. Carruades de Lafite's record year-on-year increase of 155 percent. During the last 25 years, investments in wine have been characterised by significantly higher average profits in five-year periods than in the stock or gold markets.
The average five-year average return on investment in wine is 111 percent. For comparison: for SEtP500 and gold, this is 49 percent.
In 1999 the Liv-ex exchange was established, which is a typical commodity exchange, with the facility that on the basis of transactions and offers it creates wine indexes. Five years later, the Liv-ex 100 index was created, which was included in the group of indexes published by Bloomberg.
What should be taken into account in order to make a profit from an investment in wine?
The key to success is choosing the right vineyard. This is what our work as advisors is mainly about. Before making the investment, it is necessary to analyse trends in the wine market. Wines classified according to the rating of the vineyard from which they originate.
In addition, each yearbook is subject to criticism. Robert Parker's opinions had the greatest influence on the valuation. The 100-point scale takes into account, among other things, the season's potential, the number of days, the date on which the vine is to commence, and information on the occurrence of pests in the growing area.
Apart from the number of points, it is also recommended that the time of achieving full taste should be reached, which usually requires "around 20 years' notice - this is a very important signal for investors. Repeated evaluations of wine have an impact on its current prices every few years.
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