In the last week; on a social media group of wine enthusiasts a lot of discussion on fine wine investments happened, all triggered by an article in the Hindu. Right from counterfeit wines to tax issues in bringing the wine back to India to people shying away from discussing their fizzled wine investments , the discussion was good but it left a void with regards to how to go about investing in wines whilst being in the India!!
This week I find out that Nikhil Agarwal’s All Things Nice has allied with UK-based Amphora portfolio management (APM) a wine investment advisory to set shop in India. Amphora was founded in January 2009 and in 5 years has become one of the leading Fine Wine Investment Advisories in UK. In 2012 it expanded its footprint into China, with the rest of South-East opening up the following year. APM has developed a customer engagement model adapted from the world of the Private Client Stockbroker, employing quantitative stock selection processes, as well as qualitative.
Fine Wines, by definition, improve with age. As they reach maturity and approach their optimum drinking age, they become more desirable and therefore more valuable. As the wines begin to be consumed they become even rarer, which in turn adds yet more upward pressure on prices. As an asset class, Fine Wine is a finite resource – the top chateaux cannot readily increase supply. David Jackson the CEO of Amphora said “A merchant’s work is done once the customer has bought and the wine delivered. Conversely, an investment advisor’s work is only just beginning at that moment, and whilst it is the merchant’s ambition to leave the customer with a pile of wine the investment advisor intends to leave the customer with no wine at the end of the process, but rather a profit.”
So, how do you invest in wine? “We build bespoke portfolios of carefully selected investment grade wines for private investors. We stock the wines for you in bonded warehouse in London. We give you in-depth market reports and ultimately help you sell your holdings at the best prices!” said Nikhil.
For those who are trying to make sense out of this, wine is an alternative asset class which in lay man terms is similar to investing in the stock market and to your surprise there is a wine index too, it’s called the Liv-ex!
Read this for more on wine investments!