The performance of alternative investments might surprise you
Thanks to Liv-ex for the wine performance data.
When thinking of wine investments, an image of a vast cellar in a great house comes to mind. However, wine has become a much more popular
and accessible investment, not least because it has often performed favourably compared to the S&P 500 and other alternative investment options.
There is a specific selection of wines which increase in vintage and value as they mature. Some of the most famous are Bordeaux wines, but bottles from other regions and countries are also suitable for investment. Production of 'investment grade' wine is tightly controlled and, as the supply gets even scarcer over time, its value increases as there is considerable demand for a limited product. To generate significant return from wine, investors need to do their research and have a good knowledge of the market, including what vineyards, grape types, harvests and regions are likely to produce the most sought-after, quality wines in each year.
How much of a return you can get from investing in wine depends on the age and type of wine you buy, as well as when you cash in on your investment. As the data shows, the returns can fluctuate each year so research and timing are key. However, although returns can vary, wine generally has a low correlation to the stock market and other investments so, as part of a diverse portfolio, investors see some good returns from it.
Read the full article at: https://www.knowyourmoney.co.uk/personal-finance/are-there-alternatives-for-investing-my-money/
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