Fine Wine Investment - Important Points
Investment term
One should look at a minimum investment term of five years, with maximum
returns arriving between eight to ten years and more. The past few years have
seen significant price movements for many wines (notably First Growth Claret)
in the short term but this should not be considered the norm.
Growth Rate
Traditionally the correct wines have risen in value by an average of between
8-15% per year, though these rises are not necessarily uniform – movement
is often sporadic. Again, some wines have accrued this type of percentage in a
matter of months over the past few years but again this should not be seen as
typical.
Wine Storage
We will sell the wine to you in bond (excluding duty and VAT) and store it for
you under bond. Current storage costs are £10.80 per case per year
(although Cellar Plan
customers benefit from lower rates), which includes insurance at replacement
value. Wines are stored in Berrys’ temperature and humidity
controlled facility.
Selling Wine
When it comes to selling the wine, you would sell under bond to avoid UK duty
and VAT. You are not bound to sell the wine to Berrys, though most customers
do. Berry Bros. & Rudd will normally either make an outright bid for your
wine or offer to sell it on a broking basis. The margin is approximately 10%,
so the customer will ‘net’ 90% of the selling price.
Tax
Berrys are able to offer you advice as to which wines to buy. We do not offer
financial advice and we suggest you speak to an IFA regarding tax
implications.
Wine Provenance
Which is to say perfect stock from reliable sources. Berry Bros. & Rudd
only purchases wines from relaible, proven sources: direct from
château as often as possible. This is absolutely key to success in wine
investment
Investment Amount
The minimum investment amount (in order to ensure flexibility of the
portfolio) is around £10,000. Given the nature of the present market, the
best returns can be made on the top-end, blue-chip wines such as the Bordeaux First Growths
from the best vintages. Prices
per case of these types of wines start at around £5,000 per case and go
up to around £10,000 per case and more.
To discuss this further, please contact our Fine Wine Department.
9.00am to 6.00pm Monday to Friday
Tel: 44 (0) 1256 340123
Fax: 44 (0) 1256 340149
Email: Fine
Wine Enquiries
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