Why is wine becoming a common part of an investment portfolio?

Wine is an increasingly popular financial tool due to its less volatile nature compared with common equities such as shares. Classed as a physical asset, a bottle of Fine Wine can never become worthless and will always hold intrinsic value. Fine Wine should form part of a diverse portfolio consisting of a number of different asset classes. By holding physical assets as well as equities your risk to capital is greatly reduced, as Fine Wine has no correlation to the performance of the economy.

Which wines shown the steepest increase in value?

Historically French Bordeaux and Italian Burgundy have shown the most consistent increases. They are considered “Blue Chip” wines that have the capacity to show prices increases upwards for 10% per annum consistently.

Certain wines have been known to increase in value upwards of 100% in a single year. However, wines of this nature generally come with an elevated level of risk but the rewards can be very satisfying.

How do I release capital from my portfolio?

Simply by contacting us and actioning a request to sell. You may have a figure in mind that you wish to release from your portfolio or you may wish to sell it all. As a client of UK Agora any wines that you have purchased from us will be sold at a cost of 5%. We recommend that clients hold their wines for 3-5 years to ensure there is enough time to show price improvemnets. For individuals who are not clients, wine that are owned but were not purchased through UK Agora will be sold at 15%.

Can I lose Money?

Trading Fine Wine can be seriously lucrative as well as great fun. But like with any capital-yielding exercise, caution is key. Whether you’re taking a toe dip for the first time or a seasoned wine trader, buying the right wines from the right vintages, at the right time is essential. It is possible to lose money trading Fine Wine, however it is worth noting that the best Bordeaux wines have not depreciated in value in any 5 year rolling period since 1990. The Fine Wine Index showed an average annual compound growth rate of 12% between 1983-2002. Since 2005 the Fine Wine Market has grown at unprecedented growth rates as international investors sought refuge during uncertain economic times which in turn increased the rarity of the top Fine Wines. This has driven the value of certain wines upwards. Market information suggest that the Fine Wine Market will continue to grow and shows no signs of falling or slowing.

What are your fees?

UK Agora aims to deliver a realistic platform which enables the best opportunity trading Fine Wines. Our fees are some of the most competitive in the industry. We charge a brokerage of 2% per year (over a 5 year period) which is paid upfront when acquiring a collection.

Where are the wines stored?

UK Agora utilises the renowned services of the London City Bond who are a Government Regulated bonded warehouse. All wines purchased by clients are stored within a private account which is managed solely by the wine owner. This ensures wines can only be sold with the owner’s prior approval and instruction to the London City Bond. This instantly protects a client as your wine’s existence is not dependant on UK Agora’s future. All wines held are insured at their present market value. If a wine appreciates in value and is somehow damaged the insurance will cover the increase in value. Our aim is to reduce as much risk as possible, as a result of these added protections our clients are more involved in the sales process and afforded an extra layer of security throughout.

Why is correct storage important?

All wines stored within the London City Bond are kept in a climate controlled environment which allows the wines to mature correctly. This is an important aspect in the resale of a client’s wines as we can provide proof to the merchant or collector who wishes to purchase your wines that they have been stored in the ideal environment, under optimum temperatures.

What guarantees do UK Agora offer?

UK Agora guarantees to sell a client’s wines at any given request. Due to the fact that wine is a physical asset this can take time. Unlike traditional assets such as stocks and shares, which can be bought and sold at the press of a button, Fine Wines must be sold to a merchant or a collector. Using our extensive contacts we will broker the best deal for you and we’ll always aim to do this within the time scales set by clients. However, to maximise any possible price increases it is advisable to hold Fine Wines for a minimum period of 3-5 years before sale is considered.

Will I own the Wines outright?

Wines purchased through UK Agora are stored privately under the owner’s name in an independent private account in a Government Regulated Facility. As the wines are stored privately this enables a client to be in full control over their holding and eliminates certain risk factors. For example, should a company cease to operate, your wines will be in your account completely safe.

What is it like working with UK Agora?

UK Agora is committed in providing a professional service with the clients’ best interests in mind. All of our staff are trained to a high standard. Our goal is to make trading Fine Wine as stress-free as possible. Check out our testimonial section to read what our clients say about us!

Does UK Agora work with any charitable causes?

Every year UK Agora will donate a percentage of their profits to British based charitable foundations.