Investment in fine wine takes flight

In Wine storage on September 5, 2011 by Lock+Store Tagged: ,

In local news reporting, following stories of investors being cheated in wine investment scams, there would always be one redemptive story about lucky investors making tons of money from their wine investments. In today’s Straits Times, Managing director of wine brokerage Australian Wine Index (AWI), Mr Andrew Bassett is quoted as saying that “three out of four of his 3,000 clients are Singaporeans.” Among the storers are doctors, surgeons, lawyers and the odd hawker stall owners and taxi drivers. His company has a staggering $80 million worth of wines stored here.

Singapore investors have a penchant for red wine and are also partial to French wine.

The returns? About “12 per cent to 14 per cent per annum prior to the global financial crisis,” according to Mr Basett. I’m sure we are more interested in returns in the current economic climate.

That said, industry commentators are skeptical, and have warned of “risks as wine is not the most liquid of assets, and investors may find it hard to find buyers.

And the price of wine is ‘governed by weather, sun and rainfall, and the whims and fancies of wine critics’, said local wine expert George Wong.

Investors may see the value of their assets falling, not rising.”

Like what they always say about property, invest in what you can live with, and in the case of wine, invest in what you enjoy drinking. Click here for wine storage options.


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