Wine Rack Cabaret

Investment in wines is not new. Those with expert knowledge of the best vintages and top chateaux of Bordeaux have been exploiting this sector for hundreds of years. Over the last quarter of a century, fine wines have proved to be one of the most consistently stable, high yield and low risk investments in the world.

With capital growth of over 300 per cent since 1992, wine as a commodity has outperformed the FTSE 100 index, Victorian art and gold, offering significant returns without the volatility of the stock market.

Wine investment guru, Mahesh Kumar in his famous book, Wine investment for Portfolio Diversification indicated that, portfolios consisting of fine wine have a greater expected return per unit of risk. In addition to capital appreciation, wine investment can offer diversification rewards by virtue of a low correlation with both equity and bond markets.

Wine can, and often has, outperformed the FTSE 100 and the Dow Jones, offering substantial returns without the volatility of the stock market. Wine is an effortlessly transferable asset; there is an established fine wine marketplace and a booming auction market. Wine-based investments received a shot in the arm with the formation of the London International Vintners Exchange (Liv-ex) in 1999 which operates an internet and phone-based information and trading platform for fine wine merchants.

Generally, wine does not attract capital gains tax as it is considered a wasting asset by the revenue. The Fine Wine market tends to be less volatile than financial markets and is less susceptible to market downturns and adverse economic conditions; only global recession tends to significantly affect wine prices. Still, Fine Wine has proven to be an effective hedge against recession, inflation and financial assets. Fine wines mature and improve with age and have a lifespan of up to 50 years

In addition to capital appreciation wine investment can provide diversification benefits by virtue of a low correlation with both equity and bond markets. When considering a fine wine investment as a luxury gift, it is a good idea to include wines from both the top French houses as well as some of the lesser known vineyards.

High capital appreciation of fine wines

As is the case with all assets, values can go down as well as up. Aside from the early 1990s and end of 1997 glitches, prices for fine wines from the best vintages have risen sharply over the past 20 years and the wine investment market has, in the case of well-managed portfolios, proved to be a happy hunting ground for the knowledgeable and well-advised speculator.

Fine wine as an investment has many benefits over other structured investments - such as unit trusts, bonds and equities - as it benefits from the following attributes:

* Tax Free
* World-Wide Demand
* Increasing Rarity
* Deceasing Availability
* Low Risk
* Easily Realisable
* Personal Ownership
* No Annual Management Fee

International desire for investment quality wine has multiplied tremendously over the last two decades. Supply however has dropped due to limited international production and this creates the basis for a very lucrative and secure market.

Also consider these favourable factors:

* Firstly, fine wine has benefited from a spectacular increase in popularity and there is an recognized and flourishing fine wine auction market. Therefore, it is quite improbable that demand will decline.
* Secondly, wine is a transferable liquid asset.
* Thirdly, there is no limit to the volume you can invest in wine and as wine is a 'perishable' item, it is not subject to capital gains tax.
* Lastly, returns aside, a superb bottle of fine wine is enjoyable to the taste and senses. You can actually enjoy drinking your investment.

Profiters provides wine investment expert advice, buying wine futures En Primeur and selecting the best vintages to maximise your investment returns. Visit our website to read more about wine investment.

Shop here for a variety of wine racks:

	Oceanstar WR1132 12-Bottle Dark Espresso Bamboo Wine Rack List Price: $25.00 Sale Price: $25.00 Used From: $21.12
	Made with 100% bamboo, the Bamboo Wine Rack from Oceanstar Design Collection is the ideal fit for wine enthusiasts or starters beginning their wine collection. Present this wine rack to someone special or as a wonderful housewarming and Christmas gift...

	J.K. Adams MWR-40 Hardwood 40-Bottle Wine Rack, Natural List Price: $125.00 Sale Price: $58.99 Used From: $77.33
	Introduced over 25 years ago, our geometrically proportioned wine racks have sold in the millions. They'll fit into virtually any space ¿ and are infinitely expandable. Each wine rack kit comes packed with enough extra joining pins to allow you to add on another rack in the future and another...

	Winsome Wood 28-Bottle Wine Rack, Natural List Price: $74.99 Sale Price: $49.00 Used From: $38.85
	Calling all oenophiles (if you know this word, you're truly a wine lover)! Is your collection of Spanish varietals and Tuscan reds growing but your storage space isn't? Winsome Wood's 28-bottle wine rack offers compact and economical (read: save your pennies for a new Chardonnay) housing for all those special vintages...

	Kamenstein Butterfly Wine Rack List Price: $24.99 Sale Price: $22.50
	This butterfly-shaped wine rack keeps your favorite wine always within reach. Like a minature wine cellar, the horizontal racks keeps corks moist so wine lasts longer. Separate compartments hold up to 8 of your private selections...

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