Investment Grade Wines

Wines from a top class Château from outstanding to exceptional vintages which are able to generate steady returns due to their increasing global demand and structurally limited supply are considered to be Investment worthy. Investment Grade Wines are an improving asset, as they age, they improve in quality and begin to be consumed, which increases the scarcity factor, fuelling higher and higher prices. The majority of all Investment Grade Wines come from Bordeaux, France. This is owing to their proven track record, long aging potential, high quality, limited supply and strong secondary market among many factors.

 

The investment grade wines are generally the same worldwide. So irrespective of the domestic wine market scenario, the money from various countries is being invested into the same wines. In effect, this creates a great safety net as the investment opportunities are finite but returns are infinite with healthy demand from emerging economies.

 

There are thousands of wines to choose from globally but in general there are not more than 0.1% of the total global wines that are worthy of investing. Of the 0.1 % almost 85% of the wines are produced in Bordeaux, France. This is owing to their proven track record, long aging potential, high quality, limited supply and strong secondary market among many factors. Our experts have shortlisted 75 labels that are worthy of investments with a proven track record and are usually found in some of the world’s leading wine cellars. Investment in these wines can be as simple as buying a case on investing in hundreds of cases depending on your need and investment capacity. Historically, Bordeaux Investment grade wines (also known as blue chip labels) are usually safe bets that provide a return of 17-20%/annually over the course of a 3-5 year period. On the more risky side of investments, the less know investment grades can yield between 25-35%/ annually but do not always have a proven track record. Our guidance is always to invest in the Blue Chip labels to safeguard the investment as there is plenty of historical evidence to demonstrate they will yield further returns as the global demand for these labels grows even stronger.

It is notable that Investment Grade Wines, as a capital asset, have performed well when compared to traditional equity and fixed income securities with low correlation to these traditional investments.