According to research conducted by wine investment firm Vin-X and published this week, quality wine has been the most profitable asset since 1988.<\/p>\n
The report was authored by Martin Pruszynski, head of purchasing at Vin-X, and specifically shows that wine investing has had the best overall performance when looking at the total growth of major asset classes since 1988.<\/p>\n
Over this period, the growth of fine wines is 1,474 %, almost double the closest asset in the ranking, the Dow Jones (783 %). The S&P comes third with 744 % and real estate, fourth (312 %). Even though the latter asset has been on the rise since the very end of the 1990s, the average price of a house in the United Kingdom has only increased by 17 TP3T during this decade.<\/p>\n
The FTSE 100 is fifth with 306 %, well ahead of gold (162 %). Certainly rising sharply between 2000 and 2011, gold came back from afar after two dark decades between 1980 and 2000.<\/p>\n
Dividends have not been included in the calculations because it is impossible to systematically know whether they have been spent, reinvested or simply not paid.<\/p>\n
Pruszynski notes that even though wine investment has been coming out of a difficult period since 2011, it has only seen three negative five-year slices over the period studied, and no negative ten-year slices.<\/p>\n
It is telling that the worst ten year slice in the wine market (out of almost 30 years) is still double the average and median inflation rates in the UK.<\/p>\n
Geoffrey Dean<\/p>\n
November 11, 2015<\/p>\n