4 Reasons To Invest In Wine in 2019 – Tips from Giles Turner of BWC Management

4 Reasons To Invest In Wine in 2019 – Tips from Giles Turner of BWC Management

As an entrepreneur, you undeniably want to invest in a business that will give you high returns. Unlike other traditional investment vehicles, wine is an excellent choice that will meet and hopefully surpass your expectations.

The ever- growing wine-imbibing culture worldwide being another considerable factor that has led to the disproportional demand curve for the precious commodity. The demand for wine in most regions worldwide has outgrown its supply hence the assurance that wine prices will be at an all-time high for a period of time and will withstand the economic crisis should there be any in the near future. This is good news for the wine industry stakeholders.

Are you among them? If not, here are some reasons why wine investment is a safe haven business-wise.

  1. It’s Tax-Free

According to its classification as a ‘wasting asset’ by the Hacking Her Majesty’s Revenue and Customs (HRMC), whose criteria is that the commodity or asset in question must be tangible  and moveable, and should have a predictable life at the time of purchase not exceeding fifty years – qualities that wine possess,  wine is exempted from taxes. These include Capital Gains Tax (CGT) and Inheritance Tax (IH), Value Added Tax (VAT) and Duty. It’s exclusive of VAT since it’s stored in bonded warehouses.

Notably, you should also check with a tax consultant to confirm the tax conditions in your area of operation.

  1. Increased Market Popularity Globally

Owing to the fact that the demand for wine globally exceeds its supply, having a stock of several vintage bottles of wine at your cellar is an investment worth making. Unlike other commodities whose quality diminish over time, wine quality increase over time and so does its price. India

The emergence of other rapidly growing economies such as China and India, coupled with their fair share of affluent to middle-class citizens who indulge in a glass or two of wine every so often propels the wine market share.

  1. Huge Profits on Investment

Although wine investment requires a considerable amount of time to yield tangible returns, it’s worth the wait. It’s key characteristics as an asset whose value and price increases with time unlike other investment commodities is a sure way to measure it’s stability and profitability in the market.

Fine wines, also referred to as Vintage are considered to rake in higher profits than other ordinary wines. This, therefore, means that you should familiarize yourself with the wine brands in the market to enable you to differentiate the various qualities as well as their price ranges to avoid exploitation by the wine merchants.

4.  Hedge Against Other Economic Securities

Wine has been proven to be an exceptional asset to diversify your portfolio and also act as a hedge against other economic securities. Take for instance if you’re trading in real estate, bond markets or any other investment vehicle and there occurs a fluctuation in price due to economic factors, wine will certainly retain its price and better still its demand since the main consumers are least likely to feel the economic crisis due to their status.

This explains the benefits of considering wine as an all-time investment choice. Make the ultimate decision now and reap the benefits of the long-term investment.

Giles Turner is Head of Private Client Sales at BWC Management

Website – https://bwcmanagement.co.uk/

 

 

 

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