Nikhil Agarwal, one of the wine industry’s best known and respected Sommeliers has signed on a mega partnership with London based investment experts to secure fine wine investment services here in India.
Already in the forefront for Wine & Spirits consultancy and managing several niche as well as training and educational services for the trade under the All Things Nice umbrella which is spearheaded by Nikhil Agarwal - the company has also set up a Fine Wine Investment Arm to cater to its growing base of wealthy clients.
So, how do you invest in wine? “It's simple”, says Nikhil. “We build bespoke portfolios of carefully selected investment grade wines for private investors. We stock the wines for you in a bonded warehouse in London. We give you in depth market reports and ultimately help you sell your holdings at the best prices! Like I said: simple.”
The underlying principles of wine investment boil down to the iron law of supply and demand. The handful of top Bordeaux & Burgundy estates in which we specialize are produced in preciously small quantities, so there is painfully limited - and ultimately diminishing - supply. Put simply, there’s no longer enough of the top red stuff to go round.
You can also add into the fold that Fine Wines, by definition, improve with age.As they reach maturity and approach their optimum drinking age, they become more desirable and therefore more valuable. As the wines begin to be consumed they become even rarer, which in turn adds yet more upward pressure on prices. As an asset class,Fine Wine is a finite resource - the top chateaux cannot readily increase supply - so this seemingly insatiable demand coupled with a perfect invertedsupply curve (found in no other asset class) is set to drive prices ever higher.
David Jackson the brain behind Amphora Portfolio Management identified an unprecedented opportunity for wine investors in late 2008 following a credit-crunch driven market correction.
Commenting on why an investor would choose All Things Nice and Amphora Portfolio Management and not their stockbroker, David explains, “Well, for one thing neither All Things Nice nor Amphora are wine merchants!”
And this is actually very important: a merchant’sbusiness and a fine wine investment advisor’sbusiness are very different beasts, and the needs oftheir respective clients are often in disharmony.
A merchant’s work is done once the customerhas bought and the wine delivered. Conversely, an investment advisor’s work is onlyjust beginning at that moment, and whilst it is themerchant’s ambition to leave the customer with a pile of wine the investmentadvisor intends to leave the customer with no wine atthe end of the process, but rather a profit.
All Things Nice and Amphora Portfolio Management launched the Fine Wine Investment service in India in July 2014 in the company of a very privileged audience in Mumbai.
David Jackson & Philip Stavely has recently visited India to expand the business in Mumbai and to meet potential investors in Delhi.