WINE INVESTMENT | PRACTICALITIES

wine investment home

PROVENANCE & CONDITION

In a growing global market place, these are important considerations to ensure your investment is safe guarded. Purchasing wines that are in pristine condition is essential, which makes provenance key. Goedhuis gives you that assurance. As we have some of the best relationships in the market, not only directly with the growers but also with trusted suppliers, we ensure that we are among the first to see the best offers coming to the market.

A wine stored under bond in pristine condition in its original packaging will command the full market price. Any of the following can reduce the price: duty paid status, damaged or poor condition labels, or US strip labels. Certain top producers are seeking to guarantee authenticity with various anti-fraud technologies such as Prooftag or eProvenance.

STORAGE

Correct storage of wines is paramount: wines stored in bond are not liable for duty and VAT and upon liquidation, in bond wines are preferred by buyers when taking provenance into account. Investment grade wine should always be stored in professional storage, in a temperature-controlled bonded warehouse.

At Goedhuis we are partnered with Private Reserves Ltd., an independent wine storage company set up in 1988 for the sole purpose of storing fine wines in the best and most secure conditions in the UK. Your wines are also insured to full market value. Storage costs range from £5.28 - £6.48 ex VAT per 6 bottle case per annum, depending on the total number of bottles stored.
visit the private reserves website
LEVEL OF INVESTMENT

LEVEL OF INVESTMENT

As prices for the best wines rise, so too the cost of entry. Buy at the level of risk you are comfortable with as there are low, medium and high-risk strategies with wines. The wines that are of high enough quality to have investment potential, start at around £1,000 per case rising to more than £50,000 per case. As with any investment the key is to work with a sum you can afford. We recommend serious investors start with £100k+, with the most dynamic investors entering the market with £500k+. More substantial outlay gives your portfolio flexibility with a balanced selection of wines, increasing the potential for better returns. It is always best to view your portfolio with a sum of money that can work for you, as like any investment wine can go down as well as up.

LENGTH OF INVESTMENT

LENGTH OF INVESTMENT

Notwithstanding the underlying supply and demand driver, it is reasonable to expect fluctuations in market prices. For this reason, we would recommend a medium to long term hold period (eight to ten years plus), allowing time to ride out any potential downturns.

COST OF INVESTMENT

COST OF INVESTMENT

The only costs, other than the cost of the wine itself, are storage charges and commission on sale. Private Reserves storage costs range from £5.28 - £6.48 ex VAT per 6 bottle case per annum, depending on the total number of bottles stored, which includes insurance cover under Octavian’s All Risks Policy. In the rare event a case of wine is damaged or lost, it will be replaced. Where replacement is not possible you will receive full market value for the wine.

visit the private reserves website

TAXATION

Any wine bought for investment should be professionally stored under bond, meaning the duty and VAT is suspended and not paid on purchase or sale. Only if you take your wine out of ‘bond’ for delivery are you then subject to paying these taxes. According to HMRC, wine is considered a “wasting asset” as it has no useful life beyond 50 years and therefore any bought and accumulated by private individuals is not subject to Capital Gains Tax. (We recommend that prior to investing in wine you visit the HMRC website and/or speak to an Independent Financial Advisor)
VISIT THE HMRC WEBSITE

VALUATIONS

You can view your reserves list on the Private Reserves website at any time, valuations based on the Liv-Ex Market Price (the lowest price of a wine listed by "tier 1" wine merchants and brokers, a group of around 50 top wine companies throughout Europe, including Goedhuis & Co, that actually hold and own stock) with tasting notes where available. A more precise valuation can be requested from Goedhuis & Co at any time however, we recommend a biannual valuation. On occasion if there is demand for a wine in your portfolio, we will enquire whether you wish to sell. Throughout the course of your investment you are able to speak directly with your account manager.

SELLING

Goedhuis have a dedicated broking team to help our clients maximize sales of their wines.
The commission rate for sales is 10%.
wine broking

FIND OUT MORE

For more information or to discuss a potential investment please contact our team on investment@goedhuis.com or call +44 20 7793 7900 in the UK or +852 2801 5999 in Hong Kong.
contact us
Fine Wine Storage
Impeccable storage with Private Reserves
Find out more
Wine Investment
Find out more
Contact us
Find out more