June 2016

Fine wine could be a safe investment haven following pro-Brexit vote as Sterling tumbles

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Investors looking for a safe haven amid the post-Brexit vote stock market turbulence could find calm in a surprising corner: the fine wine market. Vintage investments have a number of defensive characteristics and tend to perform well when the pound is weaker. During a week in which the pound has fallen to a 31-year low following the UK's vote to leave the European Union last Thursday, cheaper Sterling is set to make wine cheaper in foreign currencies and stimulate overseas demand. The Wine Investment Fund told City A.M. that, although its Bordeaux-sourced wine investments are priced in Sterling, the majority of buyers are based abroad, typically in China, the US and Japan. From 2011 to 2014, the fine wine market suffered a 36 per cent price correction following a lengthy period of declining prices, and sales were then flat in 2015. However, investments have delivered annual returns of almost seven per cent since 2003 and...

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UK Agora: Brexit Safety – Fine Wine

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Gold recently spiked in price as investors rushed towards safe havens. However, let's not overlook the the key dynamics of the fine wine market; stability and safety. Fine wine is not volatile and its price performance is not linked to the financial markets.   Investors have used the fine wine market for decades to hedge risk. And now is the time, more so than ever before to be including these benefits within your investment portfolio. As of now, fine wine prices have not yet been impacted upon. UK Agora is buying the best wines for our clients as we see this as an opportunity to protect Sterling and investment value.   Back dated vintages of highly regarded wines offer fantastic value right now. Now is the time to either add fine wine to your investment portfolio or increase your holding. Broadening an investment portfolio towards more stable, alternative assets like fine wine could well help stem any negative outflow of value.        ...

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