Irish investors are increasingly turning to fine wine amid dwindling returns for other forms of investment, according to a local wine merchant.
Northern Ireland-based James Nicholson, which offers a number of services through website JNwine.com, said its investor customers had secured an annual return of about 23% for their wine portfolios.
‘The economic downturn, particularly poor returns from the stock market and property, has prompted people to look elsewhere and wine is attracting increasing attention as a commodity which can be expected to rise in value,’ said James Nicholson.
‘Wine has performed well in recent years and, despite experiencing a correction in late 2008, it has shown good growth since then, with many wines showing better returns now than before.’
Some of the company’s customers had doubled their initial investment in two years, but Nicholson emphasised that the level of return was largely dictated by the quality of the vintage and the demand for specific wines.
‘With banks offering low interest rates on savings and uncertainty in the world markets, people are seeking out alternative places to put their money,’ he added.
Written by Richard Woodard