WINE INVESTMENT PLAN

(some exerpts from Drumund & Co/MAGNUS in the UK)

THE BEST INVESTMENT 1975 - 1996 VINTAGE CLARET

THE INVESTOR’S PROBLEM

If you have been relying on the building society or bank to give you a steady return on your savings, you will by now have realized that the return has declined of late.

Security of capital on fixed returns is in fact a misnomer, since over the medium to long term the value of your capital will diminish in  real terms.

So now is the time to consider an alternative form of investment or watch your income diminish and your capital reduce in real terms.

OTHER FORMS OF INVESTMENT

You do not want to take unnecessary risks. So an alternative would have had to show a past history of security, and a consistent return on one’s savings. Over the period between 1975 and 1996 a survey carried out by Robin Duthy ,the author of ‘‘The Successful Investor’’ showed some startling results on returns for various types of investment ...wine investing is the most superior of all types of common investments such as stocks, bonds, real estate etc.

If you wish to invest in wine, a minimum invest is $5000.00....Please contact the Wine -Storage Cave for more information.

WHY INVEST IN WINE

The world's drinking habits do not change markedly from day to day. There are trends, mainly depending upon the world economy, and as the world grows richer the demand for the very best wines has become greater.

Historically the very top wines have consistently appreciated in value.In the early years of a wine ( say eight years) it's value rises as  an investment.

However once the wine has reached it's prime drinking time the amount available of that vintage will diminish and the price will rise because of the rarity value. Records on the prices achieved by the finest wines go back at least 240 years, and in some cases many hundreds of years more.

Those prices have shown a regular steady growth, with an inital investment of $10,000 in Vintage clarets has risen to $225,000 over the past 22 years.  The fluctuations do happen, but not with the same regularity as, say, equities.

WHY INVEST IN BORDEAUX VINTAGE CLARET ?

In 1855 the famous classifications of the Medoc Chateaux were introduced.

These classifications were based on the prices fetched over the previous 100 years. These classifications still stand today and the wine from the premier Chateaux in the Bordeaux region are the most sought after in the world.

The quantity of wine each of these Chateaux can produce is strictly controlled, limiting supplies to the market. A further limitation is the quality of the crop which is very dependent upon the weather experienced during the growing and harvesting season.

In fact, in any decade only two or three crops are considered outstanding enough to be considered a great vintage year. For example only the wines of 1982, 1986 and 1988 are considered to be great vintage years in the 1980's and there has not been a great vintage year since 1990.

The demand for the clarets is constant and rising but, because of all these limitations on the supply of vintage Bordeaux clarets, the supply is limited thus the wine should command an excellent price and buyers are usually plentiful.

VINTAGE CLARETS as you will see from the aforementioned list have outperformed all the other investments. You might feel that investing in wine is risky. Records which go back many hundreds of years show that this is not so.

Investment in top class BORDEAUX VINTAGE CLARETS have shown greater returns and less volatility than equities. The very best of these wines have performed even better.

You must know the names of the Premieres Crus such as Chateau Lafite-Rothschild, Chateau Mouton - Rothschild, Chateau Haut-Brion Chateau Margaux, and Chateau Latour.

 Remember those non clarets and don't forget Chateau Petrus, DRC's Romanee Conti, Chateau d'Yquem and some of those "great" California wines.

Not only have these wines given hours of joyous drinking pleasure but also substantial returns for those lucky enough to own them. Not only that but there is NO UPPER LIMIT to what you can invest.

ONE MUST REMEMBER THAT THE VALUE

OF WINES CAN GO DOWN AS WELL AS UP

HOW DO I KNOW WHICH WINES TO BUY ?

All investments demand knowledge and expertise. At regular intervals investors receive a newsletter keeping them abreast of current market conditions (as a member of the Wine  Storage Cave we will keep you informed of your investment).

WHAT PROTECTION IS THERE ?

The investor actually owns the wines, not shares or units of investment. The Wine  Storage Cave advise clients to keep their wine in a Bonded Warehouse  (like The Wine  Storage Cave in the USA) because:

HOW DOES ONE SELL THE WINE ?

The Wines may be sold at any time either completely or partially.

The Wine Storage Cave knows the wine market and continuously monitors auctions in the U.S.A. and abroad to keep abreast of prices and demand. When the investor wishes to sell, The Cave will prepare all the paperwork and see to the technicalities. The auctioneers commission is usually less than 10% on the selling price and the investor should receive the proceeds in six weeks. Also at the Cave we have members who will buy and/or trade you their wine.  Plus we have several exterior avenues for you to sell your wine.

WHAT ARE THE CHARGES ?

For keeping wine in the client’s own name and account number in a Bond, documentation, storage and insurance it is usually 0.25-0.5% p.a. depending on quantity and value of wine purchased.

Hi again, this is Hannah and Joshua, if you want to learn more about wine investments speak to my grandfather ...Vince.  Just click our picture.

Finally, Hannah and Joshua have an investment in wine. Should your children or grandchildren have one too?  When your wine is stored at "The  Wine-Storage Cave" they are not volitable investments!