“Alternative Investments: Enhance Your Assets by Investing in Great Wines”

In this period of inflation and volatility in the financial markets, savers who want to protect their capital in the long term should not hesitate to diversify their investments. Among alternative asset classes that are likely to generate consistently increasing returns, fine wines have many advantages to offer.

Tasting a grand cru from Bordeaux or Burgundy always delights more than one wine enthusiast around the world. But if great wines are enjoyed by connoisseurs, they are also an investment for investors. Wine is an alternative investment par excellence, the characteristic of which is a complete non-correlation with other traditional asset classes offered to savers (stocks, bonds, real estate, etc. In today’s era of inflation and uncertainty, it is necessary to bear in mind that). the value of a great wine tends to increase regularly over the years. Over the past ten years, the benchmark index for investors, the Liv-Ex 1000, which lists 1,000 fine wines mainly in France and Italy, has risen 79% without suffering the severe volatility seen in other asset classes. This appreciation of the most sought-after vintages is mainly due to the continued increase in global demand. The emergence of large fortunes, especially in developing countries, has partly contributed to this phenomenon. The purchase of fine wine is more than an external sign of wealth that would manifest itself in the same way as a luxury watch or jewelry, it responds to the need of many consumers to join a community of connoisseurs, to participate in tastings. among the “happy many” and gradually acquire real expertise. However, the development of supply, necessarily limited by the production capacities of the most sought-after terroirs, cannot follow the development of demand, especially because climate risks (frost, hail, drought) further weaken volumes every year.

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