Knights Luxury Wealth
At Knights Luxury Wealth, our main aim is to provide our clients with excellent end-to-end service, whether you are a well-seasoned wine collector or just starting to build your collection.
Assessing the Viability of the Fine Wine Market
When considering the fine wine market as an investment, prospective investors often have numerous questions about its credibility in delivering a safe, consistent, and tax-free return on capital.
Many of our most successful clients once shared these same concerns.
However, upon closer examination of the facts and figures, they were pleasantly surprised to discover that fine wine has been one of the most stable and consistent ways to protect capital against economic and political uncertainty.
An attractive option
In many cases, fine wine investments have consistently outperformed traditional investment areas, while allowing investors to keep 100% of their profits tax-free.
The reliability and profitability of the fine wine market have made it an attractive option for those seeking to diversify their portfolios and safeguard their wealth.
By reviewing the market data and understanding the unique advantages of fine wine as an asset class, savvy investors have been able to capitalise on this alternative investment opportunity.
The fine wine market’s ability to weather economic storms and generate tax-free returns has proven it to be a compelling choice for those seeking to preserve and grow their capital over the long term.
Fine wine investment has a proven track record spanning decades as a tax-efficient growth vehicle.
The Knight Frank Luxury Investment Index 2024 reports impressive returns, with fine wine achieving 146% compound growth over the decade from 2013-2023 – averaging 14.6% annually.
This strong performance stems from fine wine’s inherent scarcity.
Production is naturally limited by strict regional regulations, while climate change further constrains supply.
Meanwhile, demand continues to surge as global affluent consumers compete for these prestigious bottles, driving prices steadily upward in our interconnected digital age.
Like gold, fine wine has established itself as a stable commodity investment.
The fine wine market has demonstrated remarkable resilience, with the Liv-ex 1000 index posting a robust 19.1% gain in 2021 despite global pandemic challenges, as reported by The Times in January 2022.
With a history spanning millennia and an ever-expanding global wealthy population, demand for premium wines continues to rise while production volumes decline.
We welcome you to discover the exceptional world of fine wine investment with us.
As you gain deeper insights into this fascinating market, we’re confident you’ll appreciate its unique potential and stability.
