Why invest in wine?
Consistent returns, ongoing value appreciation and low volatility - Fine Wine is far more than a passion investment. It is one of the most compelling asset classes for institutional and private investors alike.
Annual returns Liv-Ex 1000 ’05–’22
Performance of the Liv-Ex 1000 Wine Index
The Liv-Ex 1000 Fine Wine Index tracks the price performance of 1,000 wines worldwide. Fine Wine not only delivers stable positive returns, but also proves significantly more resilient in times of crisis - especially during the 2008 financial crisis and the 2022 market drawdown.
Base: Jan 2004 = 100 · Approximated from publicly available index data · Period 2004–2022
Which factors drive performance?
Limited supply
Investment-grade wines are produced in very limited quantities - some labels exist in only a few hundred bottles. As bottles are consumed, supply declines steadily while demand rises with age.
Bottles available over time
Maturation
After a wine is first released to market, it continues to mature in the bottle. As it ages, tertiary aromas emerge - a defining trait of truly great wines.
Value growth through maturation (base 100)
Brand value
Screaming Eagle, Château Lafite Rothschild or Domaine de la Romanée-Conti can command six-figure prices per bottle. Renowned estates consistently achieve premium pricing.
Price tiers compared (base 100)
Around 3x lower volatility than the MSCI World
As a stable tangible asset, Fine Wine is around three times less volatile than global equity indices. Even when stock markets are turbulent, wine investors can expect a calmer and more consistent performance profile.
Annualized volatility compared
30-year average · in % p.a.
Illustrativ · Quelle: Liv-Ex, Refinitiv, CoinMetrics
Benefits of investing in wine
Inflation hedge
Wine proves itself as a solid store of value, especially in periods of strong currency debasement. Tangible assets provide a natural inflation hedge because market pricing can absorb inflation over time.
Wealth protection
The Liv-Ex 1000 has very little correlation with financial markets. Fine Wine therefore acts as a natural wealth protector, independent of market turbulence.
Low volatility
Compared with the MSCI World, Fine Wine has around three times lower volatility. Even when the stock market is turbulent, you can expect a more consistent performance.
True tangible asset
With a wine investment, you receive a true tangible asset that is 100% your property. In the end, you decide whether to enjoy it yourself or sell it profitably.
Tax advantages
No capital gains tax is charged on tangible assets. By storing wines in Geneva freeport, they can be sold to you under VAT suspension.
Portfolio diversification
A wine investment helps diversify your portfolio. Its low correlation with traditional markets makes wine an ideal stabilizer.
Almost no correlation to traditional markets
A correlation close to 0 means Fine Wine develops largely independently of stocks, bonds and other traditional asset classes - making wine an ideal stabilizer in any portfolio.
0.08
Correlation Fine Wine / equities
0.38
Correlation real estate / equities
Correlation coefficient versus global equity markets
0 = no correlation · 1 = perfect correlation
Illustrativ · Basis akademischer Studien und öffentlicher Marktdaten
Storage under ideal conditions
Perfect storage creates the conditions for the best returns. That is why our clients wines are stored under optimal conditions and in a tax-efficient structure at the Geneva freeport.
Storage location
Geneva, Switzerland
Insurance
100% insured
Storage temperature
13,5 °C
Humidity
70% relative
No questions left unanswered.
Arrange an introductory conversation about wine investments with no obligation - we will take the time for your questions.
