UKV PLC is promoting investing in specialist wines. Besides, this does not attract capital gains tax. In fact, it has managed to provide around 16% returns last year.
UKV PLC maintains that there is an unprecedented demand that is being seen in the fine wine market. This is because there are emerging markets that are now getting involved in drinking along with investment too. These include Brazil, India, Russia and China too besides several others. This is why wines are accruing more value than the other forms of traditional investments.
Another fact remains that wines mean finite stock. This means that once it is consumed, it has to be replaced.
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Here UKV PLC clarifies that there are certain wines that have an extremely low production rate. This means that a Chateau is not able to produce any more of a certain vintage. This means that global stock will continue to deplete. But the demand is constantly growing. This means that as the stock is getting scarce, the prices will be increasing.
In fact, investment grade wines can be considered as tangible assets. They provide complete control along with ownership. In case investment is done in wines that come from a leading chateau. Also, it will have a lot of intrinsic value too. Hence it makes sense to invest in fine wines.
But this does not mean that there are no risks involved while investing in wines. This is because the fine wines industry is still not regulated. Also, the wine merchants at UKV PLC are not financial consultants. Hence they cannot provide financial advice or give any kind of guarantee with regard to the potential increase in the value of any wine.
This means that the value of wine can go up or down. There are many things which influence the price movements here.
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