Fine wine investment: a spring in the step
Philip Staveley - Source: www.thedrinksbusiness.com
If it's true, as Tennyson suggested, that in the spring a young man's fancy lightly turns to thoughts of love, then I think we can safely propose that we approach the end of January, the thoughts of those of a more mature hue must balefully turn to the Inland Revenue.
Not only must tax returns be in by 31 January, but so must other bothersome amounts such as 'payments on account', and so on. It is at times like this that we may thank our lucky stars that, in the UK at least, profits on fine wine ownership remain free of Capital Gains Tax.
So as to forestall the first snide remark, that after a year like 2019 you'd be lucky to have any, we should remind investors and potential investors alike that no-one should view investment in fine wine as a chance to make a fast buck. At Amphora we actually try to put off new arrivals should their motives be unrealistic, because quite frankly it's not worth the hassle. We wasted considerable time last year dealing with someone who conveniently forgot everything he'd been told at the start of his journey in his fury that the market was failing to dance to his time frame.
It may seem a somewhat uncommercial approach but it is only right to clarify at the outset that the terms of investment engagement should be a minimum of three years and ideally longer, and if that puts people off then so be it. Let us once again be clear: the reason for investing in fine wine is the unique investment dynamic, which sees the wine improving as it ages, while becoming increasingly scarce as it is drunk. This process takes time, and during the time it takes it is possible to improve investment returns by viewing the market place as you might the stock market, with prices for different wines moving around all the time.
Read the full article at: https://www.thedrinksbusiness.com/2020/01/fine-wine-investment-a-spring-in-the-step/