Wine: a good investment?

• Gadea Cepas Viejas

• Carpe Diem cultivates vineyards of old doradilla vines and makes one of the most interesting white wines from Málaga In the glass, it is a straw-yellow colour with greenish hues. On the nose, it is somewhat subtle and good value at around 11 euros.

Wine has evolved from being a sought-after collectible and/or personal indulgence to a lucrative investment asset, thanks to its ability to increase in value over time. There is a limited supply of premium wines, and, similar to other collectibles, it offers resilience against market fluctuations.

Amazingly, all this has been completely market-driven. Firstly, someone had to have realised that the older the wine, the better it tasted – within reason – so age equated to better quality.

Factors like quality, longevity, rarity, vintage conditions and vineyard characteristics are critical in evaluating a wine's investment potential. Market dynamics also play a crucial role. Limited production and high demand for prestigious wines from exceptional vintages tend to drive prices up.

Strategic planning is vital, as high-end wine investments are typically long-term and require significant capital. Unlike stocks or property, wine is less affected by macroeconomic factors and often retains value even during economic downturns. Interest in alternative investments continues to grow, and fine wine is becoming increasingly appealing.

With returns like the 300% growth of premier vintages tracked by the Liv-Ex Fine Wine Index, wine investing offers stable yields and intrinsic allure, promising a bright future.