Friday, August 9, 2013

Wine Market Tracker Liv-ex: Why is Wine Considered a Golden Investment?

For centuries, pure gold was considered the finest and most secure investment asset. Nevertheless, things are slowly changing, and today’s most fierce competitor of gold investments is fine wine. Wines are an extremely popular investment option, and giving the current market situation and selling prices, they make a fabulous asset, nearly as profitable as gold. 

Liv-ex - the wine market tracker, has analyzed the selling and buying prices from the last decade, and discovered that the costs of fine wines have doubled during the last five years. What’s even more surprising is that they’ve not been affected at all by the economic crisis. Because of this, investing in fine wines is an extremely smart move, this being one of the steadiest, most secure, and profitable forms of investment.

clip_image002 People seem to be enthusiastic about investing in fine wines, are we’re not talking here about business people or experts in the business; we’re talking about ordinary people, seniors and retired persons who want to invest and stay busy. 

Fine wine is the new gold

Fine wine investments have managed to invade the market. Their prices are continuously rising, they taste deliciously, and there’s even more to come. The Wine Investment Fund assumes that the Liv-ex figures will continue to rise by the end of the year. Giving all these things, you may be wondering what makes wine such a profitable investment, and such a highly-demanded asset. Wine becomes more appealing when people are found in a relatively uncertain economic situation, and when they’re reluctant to investing their money in something that may be doomed to failure.

Government officials are putting cash into the economy from all over the world, in an attempt to boost inflation which has been rising for quite a while now, and it seems to be the main reason why worldwide investors are eager to put their funds in fine wine. The best part is that this trend is global, and it does not involve just a small group of countries. For instance, exports of Wines of South Africa, or WOSA, increased with 25%, in comparison with the previous year, counting as much as 469 liters at the end of April. 

Furthermore, if you’re curious to know from where the demand is coming from, you should know that the answer is Asia. According to Investor Ideas, Asian demand is so huge that the Treasury Wines Estates Ltd expects China to exceed the United States in the near future, and turn into the biggest and most important wine manufacturer on the globe.

Considering all these things, you’ll probably understand what determined wines to become such a precious asset. What’s even more interesting is that over the years there have appeared all sorts of permutations from the basic model of wine investment, and among the most fascinating alternatives is the fund that invests in wine-related estates, instead of classic fine wines. For instance, a notorious example in this case is the Blue Chip Winery Fund, settled in the Bahamas, and which makes use of its investment to acquire stakes in a myriad of wineries, and vineyards in various places from Canada and Europe. This is a really interesting alternative, suitable for all those who are attracted by the profitability of wine investments, but not by the liquor itself.

Investing in win should be done cautiously

In spite of the fact that the wine investment industry is doing extremely well, you should not assume that there are no pitfalls, and that everything is perfect. In reality, there are some areas where the market has cooled down lately, and the perfect example is the Vintage Wine Fund, which used to possess over $100 million in assets, and is now preparing to go bankrupt, because of a disappointing performance.

Investors must not be let down because wine investments, just like any other industry, has its ups and downs. The good news is that fine wines are considered one of the most secure and profitable investments that come along with a plethora of options to choose from. Retired persons should looking to invest should spend some more time to know the business. With the help of a wine expert, you should be able to succeed in the business and reap great benefits.

Author Bio: Jason Phillips is an investment advisor at He advises people about the latest trends and how to invest in wine market. He is a skillful content writer as well with hobbies like playing soccer and rugby.

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