Other Information

Delivery Date : Immediate
Finance Available : No
Deposit Required: 8000
Entry Level: 8000
Est. Gross Rental Return: N/A
Est. Net Rental Return: N/A
Anticipated Return of Initial Investment :
Buy As : Short To Medium Investment

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Name: Maturing Vintage Wine Investment
Property Reference: WI001
Location Information:
Country: England
Region: N/A
Location1: N/A
Location2: N/A
Investment Type(s): Wine Investment
Price: £ 8,000
Price(max): £ 100,000
Income Generation Begins From (approx): Month12

Why is Discover and Invest promoting wine investment?

A good question to ask. We consider a number of different opportunities when sourcing, but essentially we need to get excited ourselves before we can promote to our clients. There are 4 main reasons why this investment class is so exciting:

Supply of vintage wine naturally decreases over time

For many an investment case is simply supply vs. demand. In the case of vintage wines, supply constantly goes down, increasing the price. The supply goes down in 3 time periods:

- on release – 1,000s of bottles snapped up by the rich and speculative

- on reaching drinking age – many bottles are consumed by release purchasers, or simply in hotels and restaurants worldwide

- generally over the life of the wine as bottles are consumed, collected and speculated on

Demand remains strong in this economic climate

Price has a big bearing on the demand levels. Most investors have over £10,000, and for that price, one can buy a case of top end.......It seems to be a misconception that the price would be higher but it is not, therefore allowing for more demand at the lower level. Equally, demand is still strong at the high net worth end. Whilst sales in other luxury items are struggling due to £m price tags, it is likely that the rich will still be able to afford £10,000 cases of wine! Finally demand is going through the roof in the Far East, where Western-style collectibles are all the rage at auction.

Numerous price rises evident once wine reaches drinking age

Demand for vintage wine peaks when the wine hits its drinking age, usually 13-15 years after its release, or bith date. We have examples of wines that have shot up in value once their drinking age has been reached, as then it is fashionable to start consuming. Before the drinking age is reached, vintage wines are generally considered to be undervalued. The trick is buying in at the right price point just before drinking age is reached.

Misconceptions stop would-be investors

Many would-be investors don't get involved because of imsunderstanding the product and market. The most common myths are high prices (£10,000 in), lack of product knowledge (the Robert Parker ratings system explained in the brochure) and a fear of price drops due to the economic climate (a number of factors currently support demand)

So, the question is: do we have any vintage wines that are nearing drinking age, considered undervalued, that could experience significant price rises in the near future? The answer of course is yes.

Other information

Upon enquiring we will provide prospective clients with the following:

- our brochure

- due diligence on the market

- a range of suitable purchases

- a consultation with our wine expert