TDN Weekend December 2016 Issue 9
Issue link: https://www.e-digitaleditions.com/i/1045316
Who doesn't like a tipple while watching the action, with the chinking of glasses helping to celebrate a big win? But recently, the potential for wine as an invest- ment has fallen under the spotlight, with speculators buying and selling as they might for Thoroughbreds themselves. Stamps, coins, and other collectables also have seen a surge in interest from an investment perspective, as uncorrelated to the stock market these purchases seem insulated from a possible crash. The potential re- turns may also be greater than any interest rate from a bank – the value of fine wines has risen some 20% in a recent 12-month period, while the 10 top performers have increased an average of 150% when looking back over a five-year span. The golden rule of investing in wine is to deal with a reputable merchant – someone who knows what they are doing. While there is a wealth of information avail- able to would-be investors, through apps and blogs, and the growing prominence of Liv-ex, the global mar- ketplace for professional buyers and sellers of fine wine, founded in 2000 – all of which have helped to grow the popularity of wine investment – it still pays to enlist the help of an expert, who can talk you through the various considerations. Paul Hammond is the co-founder and director of IG Wines, a fine wine merchant and investment advisory outfit in central London. Among his relevant qualifi- cations, Hammond holds a Wine Spirit Education Trust Diploma, is the president and founder of a wine chari- ty, 2 Water, and writes a wine club column for London Horse racing and fine wine have a long, shared history.