The case for investing in fine wine and classic cars
By International Adviser, 27 Oct 16
With investors facing increasingly poor returns from traditional investments, the case for putting your money in alternative investments such as wine, classic cars, stamps and whisky is getting stronger, says Adam Benskin, executive director at international IFA firm Strabens Hall.
High net worth individuals (HNWI) are estimated to have almost 10% of their wealth allocated to luxury collectibles, including art, wine, stamps, antiques, diamonds and cars, says Benskin, whose firm has offices in London and Hong Kong.
In the UK, one in six investors holds alternative investments in their portfolios, according to a recent survey.
This is likely to rise, given the poor outlook for more traditional investments, with interest rates set to remain at or close to record lows and equities and bonds mired in uncertainty.
“It seems much more fun to invest in assets that you can also appreciate and admire, such as wine, cars, watches and stamps.
“But investing in alternative assets is a serious business that requires expert knowledge of markets which can generate high returns but can also be unpredictable and are usually illiquid,” explains Benskin.
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Tags: Strabens Hall
