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What are the risks of fine wine investment?

As with any other investment, there are some risks attached to wine investment.

Wine is an investment market like any other, so prices can go both up and down. However, the Cult Wines Global Index, an objective measure of the global fine wine market, the seen healthy returns alongside low volatility compared to other investments. Since inception at the beginning of 2014, the Index has a compound annual growth rate of 7.5% alongside an annualised volatility rate of 5.1% (as of 31 Dec 2022). This compares favourably to major equity indices, some commodities and other assets such as gold, which had volatility rates in the double digits over this same period.        

Past performance is not a guarantee of future results. Cult Wines Global Index is an objective measure of the global fine wine market based on Wine-Searcher pricing data and strict liquidity criteria. Volatility = annualized standard deviation of monthly returns 31Dec2013-31Dec2022 of S&P500 TR (15.3%), Bloomberg Commodity Index (14.6%), Gold USD/oz. (13.9%).