Wine is the world’s oldest and most demanded luxury product. The best and most exclusive luxury wines constitute less than 0.1% of the world’s total wine production. Hence, wine is the perfect investment as the risk is substantially lower than for investments in the stock market.
The share prices may increase one day and decrease the next, wine provides stable returns year after year and only very rarely decreases in value. Since 2004, wine has yielded a return of 247%, whereas, over the same period, the stock market, with a return of 129%, has provided a significantly lower yield. That makes wine a better and more reliable investment than both real estate and stocks. For more information about the wine investments, you can also visit https://rekolt.io.
The average annual return of wine has been +8 % for the past 16 years and it is expected that the price of wine will continue to increase at the same rates. This is due to a combination of several factors, including limited constant production, increasing demand, ongoing consumption, and rising production costs.
The production of the best and most exclusive wines is very limited, and as the world’s best vineyards are already fully planted and their area cannot be extended, this means that increased demand cannot be responded to by increased production, but only by higher prices.