Are you wine prices competitive?
We always aim to get our members the lowest price in the fine wine market.
Are my wines insured?
Yes all your wines are fully insured.
How does your management fee compare to the market?
Fine Wine Direct charges a 0% management fee. Generally wine investment companies will charge a 15% management fee. In some cases there will be an additional fee e.g. 10% to sell your wines and they may take a % of the profits.
Should I use a company that charges a management fee?
The simple answer is no, any reputable fine wine company will not charge any management fee. With access to Liv-ex and wine-searcher.com you can do your own wine price analysis. If you do pay a fee for buying a portfolio it is a complete waste of time as you will be left with no profit and most probably a portfolio of wines you cannot liquidate. We have seen this many times and this is what gives wine investment a bad reputation.
Should I buy a Bordeaux vintage like 2013 or 2014?
Our general advice would be do not buy these vintages unless you are buying the wine to drink. A good example would be Chateau Batailley 2013 an exceptional wine at a fantastic price. A wine like Chateau Lafite Rothschild 2014 shows a good appreciation in value on paper but when it comes to selling this wine it will be a terribly slow process as there is little demand for it. So, when buying any fine wine for investment always look at the trade frequency on it that will give you a clear idea if it is any good in terms of selling it and making a profit in the future.
Fine Wine Investment Top Tips
- Do not use investment company that offers low quality wines with no track record of appreciation.
- Do not pay a management fee you will end up making very little profit if any.
- Only buy in the best vintages eg 2005, 2009, 2010, 2015, 2016, 2019 for Bordeaux.
- Buy highly critic scored wines 98+/100 is always a good marker for potential investment performance, Neal Martin scores are the most precise indicator of a wines true value. James Suckling scores many 100 point fine wines so please refer to Neal Martin and calculate an average score from them both.
- Do not buy fine wine with bottle damage - stained labels, low levels as more often than not they have been poorly stored in the past.
- Be careful when buying en primeur as some wines actually fall in value when they become physical.
Where are my wines stored?
All fine wines are stored safely at Vine International part of London City Bond.
How much does storage and insurance cost?
Our storage fees are £15+VAT per case per year
How much do you charge for selling my wine?
10% of the sales value
What is the minimum level of investment?
You can invest from as little as £500, although our recommendation would be £10,000 if you want to make a significant return on your investment.
What is the recommended investment time frame?
We would recommend a term of 5 years at the very least.
I own wines with another merchant; can I transfer them to you?
Yes that is not a problem. There is a very small charge per case for doing this. You must however check with the merchant who holds your wines currently as they may have a charge for this as well.
Are there any tax benefits?
Wine investment is free from Capital Gains Tax as it is deemed a wasting asset. Inheritance tax will be subject to tax on the value of the wine not the purchase price. We highly recommend you seek advice from a tax expert before investing.
Do you sell Bordeaux En Primeur?
Yes, every year we will be offering Bordeaux en primeur. We have excellent relationships in Bordeaux and can secure any wine at the best market price.
Does wine go down in value?
Like any investment the value of wine can go down as well as up.
Can I release some of my portfolio to drink?
Yes you can, simply pay the VAT, duty and delivery.
What happens if Fine Wine Direct shuts down?
All your money is invested in the fine wine, not Fine Wine Direct Limited so your investment is perfectly safe and secure.
Decanter - wine investment guide
Liv-ex.com
Jim Budd's blog
If you have any further questions please call +44 (0)20 8065 0000 or email info@finewinedirect.co.uk