Economic uncertainty has led to a preference for fine wine over gold


Joe Baker
Joe Baker
Senior Copywriter
Joe is a Senior Copywriter working on reports, news and analysis. Previously, he worked as a B2B copywriter, journalist and editor covering a broad range of topics, including technology, transport,… Read more
  • Economic uncertainty has prompted many people to invest in stable, tangible assets, such as fine wine, according to new data from Cult Wine Investment.
  • As the stock market can be volatile and unpredictable during times of economic hardship, investors feel more secure buying tangible goods that they can sell for a profit in the future.
  • Fine wine is attractive because it can often increase in value over time, and many collectors feel that it is a safer form of investment than gold or stocks.

According to recent data from Cult Wine Investment’s Global Index, investments in fine wine outperformed traditional and alternative assets such as gold in 2022 and offered investors a higher average annual return.

Fine wine has proven to be a resilient asset over time, even during times of economic turmoil, and it has the potential to offer significant returns.

This could increase the number of people using online money transfer services as investors seek to diversify their portfolios with international wine assets.

Buying wine directly from vineyards and wineries in countries such as France, Spain, Argentina and Italy can often be more cost-effective for investors – however, they should conduct research into local exchange rates and transportation costs before making a purchase.

Preqin, a research and analytics company, predicts that the global alternative investments market will expand to $18.3tn by 2027, doubling its size of $9.3tn in 2021.

According to the Knight Frank Wealth Report 2023, there is an increasing inclination among ultra-high net-worth individuals to invest in wine, suggesting that alternative investments will be the pathway to wealth creation over the next decade.

In 2022, the Cult Wines Global Index demonstrated its stability as an investment by exceeding the returns of bitcoin (-39.93%), the FTSE 100 (4.70%) and the Bloomberg Commodity Index (-64.22%).

The main advantages of investing in fine wine are that it is a tangible asset with a long-term track record of appreciation and an alternative asset that can diversify a portfolio.

Additionally, due to scarcity and its status as a luxury item, fine wine often appreciates, making it a more attractive option than gold during economic uncertainty.

It can also be enjoyed as an indulgence or a luxury item, making it a great way to invest your money and enjoy the reward.

Are you planning to invest in fine wine? If so, use our money transfer comparison tool to find the best transfer rates and fees for your investments.

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