The fine wine market being centuries old has gained extensive momentum over recent years, making it a favoured choice over more traditional financial markets. The fine wine trade has moved on from a speculative choice and transformed into a widely renowned and covered market place. Traditionally wine buyers would buy their wine for consumption and then sell half of their collection when it was all ready to drink. Therefore paying for the original wine that they drank. Very simple to understand and very widely practiced in the earlier years of the fine wine trade.
Now, due to the emergence of new and exciting wealth creation, demand in the fine wine market has increased to well beyond predicated levels. With the arrival of new markets, China in particular and increasing media exposure the wine trade is now taken more notice of. Whilst in the past, remarkable wines may have changed hands for a few thousand pounds, now trading more considerably more.
- Unlike the majority of traditional investments, the fine wine market is not a regulated market. Capital Vintners are clear on our position and we do not claim to be a financial institution, consequently we do not give any promises on a wines profit potential. However our experienced brokers, with their extensive market knowledge, can advise and forecast a wines potential growth providing our clients the safety and security of investing in a relatively unrestricted market.
- Capital Vintners store their client’s personal wine collections in their own privately named accounts held at EHD in Surrey or VINE in Tilbury. We have been storing at EHD for several years but due to the large volume of wine held, in excess of 15 million pounds, we have extended our storage facilities to VINE as result of our clients continuously adding to their portfolio.
- In order to provide our clients with accurate and viable information, we use our membership to Liv-Ex (London International Vintners Exchange) and our decade worth of experience to provide a level of quality service that can only benefit an existing or prospective client. We identify options, provide valuations and always keep our clients in the know about the performance of the market.
- Like any market, the wine market can fluctuate; there are many influences that can affect price direction. Capital Vintners always ensures our clients are comfortable when getting on board and we believe in being completely candid at all times.
Why choose wine?
- The main principle of the fine wine market is supply and demand. Prestigious wines are in limited production, as these wines are consumed over time the remaining wines of its vintage are pushed up in value. As a result the demand for these wines increases as availability decreases.
- Wine being a tangible asset, you are able to view your collection at the bonded warehouse however we do have a unique facilities allowing your to view your collections from the comfort of your home through our online portal called Cellar view.
- The majority of the stock we deal with is in bond allowing it to be exempted from UK duty and VAT; this is an attractive element to any wine collector. As well as wine being classed as a ‘wasting asset’ it is relieved of Capital Gains Tax.
- Correct Wines – When extending your wine portfolio ensure you research the wine thoroughly taking into consideration possible market fluctuations. Capital Vintners can provide collectors with relevant information on the wine such as previous trade performance, vintage details and current market conditions.
- Provenance – We recommend you only purchase wines which are OWC (Original Wooden Casing), knowing the provenance of the wine. Capital Vintners deals directly with the chateau negociants obtaining ex-chateau stock.
- In Bond – Capital Vintners ensures you purchase your wines ‘in bond’ assuring yourselves that you do not pay tax (duty and VAT), as well as selling them ‘in bond’. The majority of the cases that we offer are sold ‘in bond’
- Storage – Cases purchased through Capital Vintners are exempt from storage charges for the first year. Here after costing £15.00 exc VAT a year including insurance. Wines held at a LCB and VINE storage facilities offer ideal storage conditions (temperature and lighting) for the wines.
- Investment Term – A realistic minimum term of a 5 year hold should be carried out on your fine wine collection. As fine wine is a finite product, the longer it is left the more potential returns maybe.
- Lack of Regulation – The fine wine trade is currently unregulated by the FCA. This sometimes results in people being given misleading information or bad advice. We strongly recommend that the way to avoid this is to do your due diligence and choose to use a well-known and established merchant.
What is my next step?
If you are looking to extend your wine collection and have read the information, we encourage you to contact Capital Vintners to find out more. With our already well-established reputation in the fine wine market, we are able to offer top end wines for competitive prices. We believe that our attention to detail and exceptional service is what makes Capital Vintners one of the leading companies for buying, selling and managing your wine collection.