INVESTING No longer a ‘closed club’: Why fine
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Posted On: 12/07/2023 5:03:01 PM
INVESTING
No longer a ‘closed club’: Why fine wine is whetting investors’ appetites
PUBLISHED THU, DEC 7 20231:27 AM ESTUPDATED THU, DEC 7 20235:17 AM EST
BEAUJOLAIS, FRANCE — “There are few things in life that can’t be enhanced by a fine wine,” reads a translation of a sign in Villefranche-sur-Saône, Beaujolais, as the French wine region marks its new season.
That’s a motto that’s increasingly being applied to investments, as oenophiles and investors alike seek to diversify their portfolios with a more eclectic mix of assets.
With low correlation to the global stock market, a good collection of the alcoholic stuff can be an excellent accompaniment to traditional investments. But not all wines are made equal, and knowing where to start can require a seasoned palate.
Why fine wine is whetting investors’ appetites
“Unlike enjoying a bottle of wine where you open it, you drink it with friends and you have a great time, there are many, many years of learning and understanding that go into appreciating fine wine,” Nick Pegna, Sotheby’s global head of wine and spirits, told CNBC.
“That, I think, is very appealing: It is an intellectual as well as a hedonistic experience for people.”
Rewarding returns
Fine wine consistently ranks as one of the best-performing alternative asset classes within the Knight Frank Luxury Investment Index, which compares the annual returns of collectibles including art, watches, cars and handbags.
Over the past 10 years, fine wine prices have risen 149%, the second-highest return of any alternative investment after whiskey (322%) — and well ahead of cars, coins and jewelry.
No longer a ‘closed club’: Why fine wine is whetting investors’ appetites
PUBLISHED THU, DEC 7 20231:27 AM ESTUPDATED THU, DEC 7 20235:17 AM EST
BEAUJOLAIS, FRANCE — “There are few things in life that can’t be enhanced by a fine wine,” reads a translation of a sign in Villefranche-sur-Saône, Beaujolais, as the French wine region marks its new season.
That’s a motto that’s increasingly being applied to investments, as oenophiles and investors alike seek to diversify their portfolios with a more eclectic mix of assets.
With low correlation to the global stock market, a good collection of the alcoholic stuff can be an excellent accompaniment to traditional investments. But not all wines are made equal, and knowing where to start can require a seasoned palate.
Why fine wine is whetting investors’ appetites
“Unlike enjoying a bottle of wine where you open it, you drink it with friends and you have a great time, there are many, many years of learning and understanding that go into appreciating fine wine,” Nick Pegna, Sotheby’s global head of wine and spirits, told CNBC.
“That, I think, is very appealing: It is an intellectual as well as a hedonistic experience for people.”
Rewarding returns
Fine wine consistently ranks as one of the best-performing alternative asset classes within the Knight Frank Luxury Investment Index, which compares the annual returns of collectibles including art, watches, cars and handbags.
Over the past 10 years, fine wine prices have risen 149%, the second-highest return of any alternative investment after whiskey (322%) — and well ahead of cars, coins and jewelry.
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