The Knight Frank Luxury Index has ranked fine wines as the fastest growing luxury investment, delivering 62% ROI to investors over the last 5 years. Growth has been driven by an increasing number of high net-worth investors turning to luxury investments in general - and vintages wines in particular - as they seek to diversify their portfolio and deliver secure, tax-free returns.
As it is their intrinsic value and rarity that keeps their value highly appreciated, fine wines are not subject to the same market forces as traditional investments, and are therefore significantly less volatile. While traditional markets remain greatly sensitive to investor behaviour and economic sentiment, vintage wines have proven themselves to be consistently recession proof.
With the the most exclusive vineyards in the world producing just 3,000 cases annually, the values of fine wine are driven by a demand that far outstrips supply - keeping valuations high, and rising.