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SWOT ANALYSIS
OPPORTUNITIES
Demand links to emerging markets,
particularly in Asia
Demand links to growth in numbers of HNWIs
and UHNWIs
Price points more affordable, (aided by
the current favourable Euro exchange rates,
particularly against Sterling, USD, HKD and SGD)
and good value deals available at the bottom of
the market
Supply can only diminish as fine wine
improves with maturity and is drunk
STRENGTHS
Popularity of tangible property – real assets
Potential for strong price growth
Inverse Supply and Demand Curve
Diversification benefits – returns are
uncorrelated to mainstream public markets and
other property assets
Inflation hedge
WEAKNESSES
High transaction costs
No ongoing income
Difficult for poorly advised amateur to
recognise best value and best time and method
to buy and sell
Several years of weak market performance
after price bubble burst
Specific market performance figures only
available for a relatively short period
THREATS
No guarantee of liquidity
Possibility of damage from bad
transportation/storage, significantly reducing/
destroying value
Assets which could be subject to counterfeit
or fraud
Direct investments are non regulated and
not subject to scrutiny of financial regulator
and majority of fund projects are unregulated,
leading to increased risk of mismanagement
