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STORAGE IN BOND

A bonded storage facility like London City Bond or Octavian Vaults will store cases of wine in optimum temperature, light and humidity controlled conditions. Wines need to grow and develop, and perfect storage conditions are key to maximising the re-sale potential of wine. The majority of UK storage facilities are 3rd party and some have existed for more than a century.

Annual storage cost between £10-25 per case, but most investment firms will offer storage as part of their services.

Investment wines should be stored ‘In Bond’, which essentially means it is ‘In Transit’ – not liable for VAT. Wines stay like this between year 1 and year 50 sometimes and change hands up to 10 times without ever actually moving. When someone eventually removes the wine from bond for consumption, they will pay the VAT and Duty.

By investing in wines, collectors actually own the stock, a tangible asset that always retains a worth. Unlike stocks and shares that boil down to a piece of paper, investors in wine own something that carries an intrinsic value.

Wines should always be stored under the owner’s name – even if they are in the brokerage firm’s trade account, as this will ring-fence any cases in the event that the firm ceases trading.

     
         
         
         

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