The Wine Collecting Process with EFWinesEFWines brings you a diverse and exciting portfolio of Europe's most collectable fine wines
The underlying principle for most successful portfolios is diversity. There is extensive evidence to show that the majority of returns are obtained by holding a wide range of portfolios. At EFWines, we have built a business on the basis that many independent financial commentators believe fine wines deserve consideration as part of a comprehensive collecting strategy. A holding in fine wine is part of the diversity argument.
EFWines believes that the wine market offers the highest level of security and consistency when it comes to market performance compared to conventional markets. The wine market is tiny in market value compared to other markets such as equities, property or bonds but it is very established. Accurate records clearly represent double-digit growth for many decades and the market for fine wine can be traced back many hundreds of years.
An analysis of a broad spectrum of leading Bordeaux wines reveals a compound Annual Growth Rate of over 14% since 1995. To put this into context, the returns for UK equities (FTSE), US equities (DJIA), Japanese equities (Nikkei), and gold (London PM Gold Fix) for the same period languished at 4%, 6%, (-)4% and 8% respectively.
As the market has an average growth rate of approximately 14% per annum, EFWines has developed a system that aims to beat the average market yield. This system comprises of identifying, sourcing and distributing the most strategically selected wines for capital growth. The main operation of EFWines is to acquire wines that are projected to produce the highest returns in the market.
Once acquired, these positions are either stored for distribution at a later date or offered to its clients for capital growth purposes. EFWines will consistently update each client with the current economic conditions and offers to buy or sell wine.
EFWines uses its consistent high level buying power, reputation and expertise to know which wines to acquire. Like every product or service, there is a mark up on the wine. Even so, the wine is always competitively priced as EFWines has been able to source the wine at a good price and/or the wine has already risen in value due to market forces.
Occasionally, the wine may not be as competitively priced as both EFWines and its client wants. This will only be due to the wine being in high demand and EFWines feels it is better to buy a wine that is not the cheapest but goes up in value, compared to wine that appears to be cheap that goes down in value.
What are the stages of building a portfolio?
1. Selection- we will help you decide on which wines to go into your portfolio.
2. Purchase - we will source and acquire your wine for you.
3. Storage – we will transfer your wine once a storage account has been opened in your name. You will then have total assurance of possession with internet access to monitor and manage your stock-holding.
4. Valuation – your account manager will be in regular contact to update you on the market value of your collection.
5. Selling – your account manager will be on hand to advise you on obtaining the best price and we will buy back the wines from you if you wish to sell.
So if you’ve decided that collecting fine wine is for you, and would like EFWines to advise you on how to build a portfolio that won’t leave a bitter aftertaste, simply get in touch and speak to an account manager today.
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