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London, 22 March 2004 – The countdown
has started. With only a few weeks left until the much anticipated
release of ‘en primeur’ 2003, a wine vintage of
limited production, tipped to be of exceptional quality and
a therefore a great investment opportunity, now would be the
perfect time to address the subject of Fine Wine investment.
‘En primeur’ refers to
the process of buying wines before they are bottled and released
to the market. The opening ‘en primeur’ price
is almost always considerably cheaper than the future price
of the wine on the open market. Buying ‘en primeur’
can also be the only way to secure wines that are available
in very limited quantities. The release of the wine is always
in the spring of the year after the harvest; therefore the
2003 will be sold in April of 2004 and subsequently delivered
in 2006.
The summer of 2003 brought with it
adverse weather conditions, where the soaring summer temperatures
across Europe affected the yield producing a smaller vintage
and early harvest. In turn, this resulted in a very limited
production of wine being produced (10-20% down on last year).
This, in itself, should scream great investment opportunity!
Experts have been exploiting the wine
market for hundreds of years. The reasons are simple. Fine
Wine investments benefit from being stable, easily realisable,
consumable, low risk and portable. There are also significant
tax advantages, as Fine Wine investment is not subject to
capital gains or income taxes. Notwithstanding all this, it’s
much more exciting to own a case of wine versus a share certificate
– and you are able to drink your profits.
One of the best ways to invest in ‘en
primeur’ is through Premier Cru Ltd, Europe’s
leading Fine Wine investment house. Premier Cru Ltd removes
all the common drawbacks from other investment schemes by
providing tailor made portfolios with no lock in periods,
no up front or exit fees, nor early redemption penalties.
Premier Cru Ltd chooses only the best wines of the vintage,
and arranges all shipping from the chateaux, storage once
it arrives and the eventual sale when the investment is realised.
Paula Golding, Managing Director at
Premier Cru Ltd, stated: “As far as I’m aware
there’s never been an ‘en primeur’ Bordeaux
wine that has gone below the opening price over a five year
investment period. With the ‘en primeur’ 2003
showing strong indications of being a great investment vintage,
now is a highly opportunistic time for investors to review
their investment portfolio and get involved in not only a
tax free and flexible form of investing, but also one which
can bring emotional returns.”
Bishopsgate Communications T: 020 7430
1600
Dominic Barretto
dominic@bishopsgatecommunications.com
Premier Cru was founded in 1992 and
is a family run company. Paula and Stacey-Lea Golding wholly
own Premier Cru, and their original background is in financial
services not fine wine. They fully understand the need to
be able to invest profitably, and have the flexibility to
be able to change a client’s investments according to
their changing lifestyle.
They are one of the longest established
specialist fine wine investment companies in the UK, and one
of the key’s to their success is the fact that they
do not hold stock. Therefore they are never in the position
of having to choose wines from current stocks or using a broad
buying technique where ‘one wine suits all’. They
structure client’s portfolios according to their investment
profile, based on the amount, the term and reason for the
investment - if there is one. They are also able to mix their
investment cellars to reflect a higher degree of flexibility
if required, other than the standard low to medium risk cellars,
frequently requested.
The buyers source the best wines in
the market for each client on an individual basis. The prices
are generally stable, but there can be some short term fluctuations
in buying prices, a well priced wine today may be overpriced
tomorrow and therefore another option will be sought.
Fine wine is one of the most flexible,
tax efficient, stable and profitable forms of investment in
the world, with a history that can be tracked back for over
300 years, as a market it has survived evolution, revolution
and war. It is free of Capital Gains and Income Tax, Premier
Cru buy, and sell, under bond so it is also free of VAT and
Duty, and for Inheritance Tax purposes it is treated as a
Chattel.
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