Serenity

Tangible Treasures for Turbulent Times

The price of Bitcoin reached a new record high this week, before promptly dropping 8%. Gold, too, has risen to new heights, fuelled through defensive purchasing by central banks against a backdrop of global uncertainty. Add to this the increasing speculation around AI, not to mention persistent inflation, and the investment landscape for 2024 looks pretty complex.

Meanwhile, fine wine is poised to reach the end of a down-cycle, following a few years of price and demand increases. So, while traditional investment options like stocks and bonds grapple with uncertainty, fine wines that are both well-priced and well-sourced might present a timely opportunity for security.

Longstanding benefits of fine wine as a real asset hold true:

1. Tangibility

In our digital world, fine wine stands out for limiting downside risk within an investment portfolio due to its tangible existence.

2. Rarity

The gap between supply of the world’s best wines and demand is set to grow as climate change continues to limit production volumes.

2. History

Wine has been around as a consumer good for c.12’000 years, and as a luxury good for c.50 years. While past successes never guarantee future performance, its history, combined with massive recent investment in winemaking technology are delivering wines of unprecedented quality.

Still to come in 2024 are political elections in 64 countries – a record number within the same year. With such potential for turbulence, real assets such as fine wine are a security haven for safe stores of wealth, and thus a source of investment serenity for the future.