Wine, anyone?

How acquainted are you with the idea of wine as a fine commodity / investment? Given its ability to enhance a simple meal with merits extending its pleasurable consumption, wine could be regarded as the most fascinating beverage. In fact, wine can be rated as the beverage with the highest desirability and market value, simply because wine commands a strong global and consumer following.

For some, investment-graded wines are widely acknowledged for their remarkable returns on investment (less than 1% of all the wines in the world are of investment grade). Wines such as Bordeaux are highly exclusive , finite in production quantity and often improve in quality over time.

With high global demand from wine connoisseurs, collectors and investors, these wines could escalate in value as their availability diminishes. When the prices and profitability of a certain wine vintage increases, producers would not be able to release supplies at their will to the market.

On the other hand, the chances of a 'crash' in investment values are also minimized. The only time a wine investment would depreciate would probably be in a global depression. Some studies have indicated that "blue-chip" wines have not depreciated by 1% in the last 25 years. Some experts in fact quoted that wine investment is able to generate 12% to 30% average returns per annum!

One example is Asia's Premium Liquid Assets who provides the most comprehensive wine investment service in the region. They even provide exit strategies for clients who wish to sell their wines using our contacts and distribution channels. Generally, investors would get to see returns over a three-year holding period.

Clients can be assigned a portfolio manager to provide updates and valuation reports on their wine portfolio.

Most wine connoisseurs across Asia fall within 30 to 50 years age group. They tend not to be driven by brand but are price conscious. The perceived health benefits of red wine should continue to drive wine consumption.

Many investors from Singapore, Malaysia, and Thailand are looking seriously into wine investment and expects the trend to catch up in Europe within the next two to three years.

For more information on wine investment, you may find out more from this FAQ website. It contains all information you need to know such as:

• Why wine go up in value?
• What are the advantages of investing in wine?
• What are the risks involved?
• What sort of wines should I invest in?