Brexit may boost wine investment
Wine investment is likely to become more attractive in post-Brexit Britain, according to 27% of 101 wealth managers and independent financial advisors (IFAs) surveyed by Cult Wines.
It said those advisors highlighted two main reasons for a possible rise in wine investment:
- the fall in the value of sterling
- greater demand diverse investment assets and ‘safe havens’
There have been warnings of recession looming over the UK after 52% of voters opted to leave the European Union on 23 June.
Investors commonly look for safe haven assets in uncertain economic times, with gold often topping the list.
Nearly half of those surveyed identified wine’s role as a diversifier to mainstream assets
‘Intermediaries are clearly seeing increased levels of interest in wine and, in light of market volatility and poor returns,’ said Tom Gearing, Cult Wines managing director.
The fine wine market has enjoyed improved trading in general so far in 2016.
But, it is not all about safe havens. Opportunists have used the immediate Brexit aftermath to take advantage of sterling’s slump.
Cult said that sales in the week following the Brexit vote were double the average for the month.
Like several others, it reported stronger demand from dollar buyers in the US and Asia.
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