Why Wine Is The Perfect Investment

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Thousands Of Years Of Market Demand Continues

Wine is the world’s oldest and most demanded luxury product, and since ancient Greece and the Roman Empire has been sought after by royalty, nobility, and the upper classes. The best and most exclusive luxury wines constitute less than 0.1% of world wine production. The most expensive and rarest wines are also status symbols, and strong growth in the number of rich and super-rich people worldwide means that demand, and hence also prices, increase yearly.

Watch the video: Why Invest in wine?

Climate change creates new conditions – and new perspectives

The classic, established wine regions in Europe are currently facing noticeable climate changes. Higher temperatures, longer periods of drought, sudden frost damage, and more unstable weather conditions are affecting both yields and production conditions. Many producers are experiencing declining harvest volumes and greater variation from vintage to vintage.

For wine enthusiasts and investors, this means one thing: The future is less predictable than it has been over the past decades.

We know the quality and character that the great regions have historically delivered. We know the level. We know the producers. We know the long-term value potential that iconic wines have demonstrated over time.

What we do not know with the same certainty is how quantity – and quality – will develop in line with climatic changes.

As production becomes more challenged and supply potentially decreases, the significance of wines that have already been produced – and of vintages where quality is documented as high – increases. For the investor, this means that existing top wines from renowned producers represent something known, documented, and in demand.

Wine investment is therefore not only about future vintages, but to a large extent about securing exposure to the quality we already know exists. The wines created under optimal conditions. The producers who have proven their level over decades.

In a world of increasing uncertainty, the familiar may become even more valuable.

For the long-term investor, the potential also lies in investing in documented quality – while it is still available.

Continuity

+ 8% Annual Return

The average annual return on wine has been +8 % for the past 20 years, and it is expected that the price of wine will continue to increase at the same rates. This is due to several factors, including limited constant production, increasing demand, ongoing consumption, and rising production costs.

  • Constant production

    Limited Production

    The production of the most exclusive wines is extremely limited, and since the world’s best vineyards are already fully planted and cannot be expanded in size, increasing demand cannot be met with increased production – only with higher prices. This is relevant at a time when climate change is putting pressure on yields in established wine regions.

  • Increasing demand

    Increasing Demand

    Demand for expensive and exclusive wines is increasing significantly. This is because the world is experiencing both strong growth in the number of wealthy people and a rising global interest in wine, particularly from the “new” economies, including the BRIC countries where a new generation of new wealthy persons increasingly demand luxury goods.

  • Konsum

    Ongoing Consumption

    Our daily consumption of wine continually reduces the supply, resulting in price increases for the remaining bottles. Ongoing consumption is, therefore, an important parameter and often a prerequisite for increases in the price of wine. That is why it is vital to bear in mind ongoing consumption when investing in wine.

  • Inflationen

    Rising Costs

    Wine is an agricultural product, and when the production of wine cannot be outsourced and the perception is that machines cannot replace the most skillful wine producers, the cost of production increases. Thus, the price of wine will, at minimum, rise in line with the general price movement; hence, wine investment is secured against inflation.

Find answers on frequently asked questions here

Investing

Wine as an Investment Asset

Wine is a unique asset because it combines tangible value, limited supply, and documented long-term performance. As the finest wines are consumed, the total supply decreases year by year – while global demand continues to grow. This creates a natural scarcity that has historically supported stable and sustained price increases.

Even after periods of market correction, the most sought-after wine regions have demonstrated remarkable resilience. Since 2004, Burgundy has delivered a total return of 509.9% and Champagne 396.7%, demonstrating wine’s ability to generate long-term value appreciation.

Wine offers a combination of intrinsic value and market dynamics that is rarely seen in other asset classes. This makes it a well-considered complement to a portfolio focused on stable and sustainable value creation.

Market Performance Since 2004

1: Liv-ex Burgundy 150
2: Liv-ex Champagne 50

Capital Preservation
Capital Preservation

A Strong And Capital Preserving Asset

When investing through RareWine Invest, you gain not only ownership of exclusive wines – you gain exceptional access to an international and exclusive network within the world of fine wine.

As an investor, you become part of a community of passionate collectors and affluent wine enthusiasts, where knowledge, experience, and insight are shared. Our strong market position provides you with access to producers, vintages, and allocations that rarely reach the open market and are typically reserved for the most established stakeholders.

Your investment also grants access to experiences that extend beyond the asset itself: private tastings, exclusive wine trips, and meetings with the winemakers behind the wines in your portfolio. Here, investment and passion meet in an environment where relationships and insight are just as valuable as the bottles themselves.

Through RareWine Invest, you therefore gain not just an investment asset, but a platform providing access, network, and experiences – values that cannot be purchased separately, but come with investing with us.

Read about how COVID-19 is affecting the wine market

Quality
Quality Assurance

RareWine Invest’s Anti-Fraud Program Safeguards Your Investment

As wine prices continue to rise and the most sought-after bottles reach increasingly high levels, the incentive to counterfeit wine grows accordingly. The falsification of rare and valuable wines is a relatively recent development, but it has quickly become a serious concern within the market. As one of the world’s largest brokers of investment-grade wine, we take this issue very seriously and remain firmly committed to safeguarding authenticity and protecting our clients.

All wines traded through RareWine Invest are examined by our internal anti-fraud department. Every single day, we receive and ship some of the world’s most expensive wines – and with that daily access comes significant responsibility.

For private collectors, professional authentication can be both complex and costly. As an investor with us, this quality assurance is an integrated part of the investment model.

Through many years of methodical work, we have built one of the world’s largest image archives of rare and valuable wines. Today, the archive contains more than 100,000 high-resolution images of both genuine and counterfeit wines, actively used to protect your investment against fraud.

Through close collaboration with, among others, wine producers, and auction houses, we work every day to make the wine world a safer place. Our anti-fraud program is unique in the wine industry and widely recognized – both nationally and internationally.

Return On Investment

14 Good Wine Investments

Over time, the return on wine investments has justified using the term investment wine. Numerous examples of wines with rising prices have been good investments, and from a broader perspective, wine has historically outperformed the global stock market.

The stock market is said to be effective, and share prices rise and fall daily in line with new information becoming available and the changing mood of the market.

Thus, the stock market is sometimes very volatile, resulting in increased risk.

Wine is much more stable as an investment.

There are far fewer events that affect wine prices to move, and the number of events resulting in falling prices is limited.

Instead, prices increase steadily at a steady pace in line with growing demand and the continuous consumption that reduces the supply.

The wines below are examples from existing, actual portfolios.

The investors have purchased the wines through RareWine Invest based on RareWine Invest’s recommendations.

Valuation prices correspond to the sales price of wines on the global market and have been communicated to the investors via My RareWine Invest. 

In 2015, the American business magazine Forbes focused on wine investments and compared wine with stocks.

It compared a portfolio of various investment wines with the market index S&P 500 over 20 years. The outcome was that investment wines had provided twice the return on investment compared to stocks from 1993-2013.

Wine Purchased Valuation Returns
2013 Domaine Leroy Richebourg Burgundy €2.250 Mar 2020 €10.500 Sep 2023 100% 22% Annual
2009 Comte Liger-Belair La Romanée Burgundy €2.590 Jan 2019 €4.500 Feb 2021 74% 30% Annual
2007 d'Auvenay Auxey Duresses Blanc Burgundy €750 May 2020 €5.000 Aug 2024 567% 56% Annual
2012 Coche-Dury Corton-Charlemagne Blanc Burgundy €2.250 Jul 2020 €5.250 Oct 2024 133% 22% Annual
2017 Bizot Vosne-Romanée Burgundy €650 Jul 2021 €3350 May 2024 415% 78% Annual
2005 Jacques Selosse Millesime Champagne €420 Jan 2019 €1550 Jun 2021 269% 25% Annual
Krug Collection Coffret Champagne €460 Nov 2019 €1900 Apr 2024 313% 38% Annual
2002 Salon Cuvée "S" Champagne €450 Jul 2019 €1.100 Oct 2023 144% 23% Annual
1996 Dom Pérignon Champagne €220 Nov 2019 €370 Nov 2023 68% 14% Annual
1998 Krug Vintage Champagne €130 Feb 2017 €400 Nov 2023 208% 18% Annual
2017 Petrus Bordeaux €1.300 Aug 2020 €2.450 Sep 2024 88% 17% Annual
2016 Tignanello Italy €60 Nov 2019 €150 Feb 2024 154% 25% Annual
2012 Sassicaia Italy €115 Jan 2019 €220 Apr 2024 91% 13% Annual
Brora 38YO 16th release 1977 Whisky €1.200 Jun 2020 €2.150 Jan 2024 79% 18% Annual
Johnny V. Jensen.JPG

I consider wine investment to be a supplement to other investments. Historically, we have seen fine returns on investments in wine, which I find appealing. Finally, it is also good fun to be able to invest in an area that I’m really interested in.

Johnny V. Jensen

Aalborg

Investment Guide

Get RareWine Invest’s Guide To Investing in Wine

Download our guide to investing in wine. Fill in the form, and you’ll receive your wine investment guide. The guide provides insight into selecting the perfect investment wine and explains how RareWine Invest’s investment advice helps you obtain the best return.