Analysis On The Value And Strategy Of Wine Investment

With the rapid economic development in China, people's income level hassignificantly improved. People are becoming increasingly concerned aboutreasonable and effective investment and financial management to ensurecontinuous appreciation of their wealth. In recent years, wine investment hasbecome a new hot spot in personal investment. Negative interest rates andinflationary pressures have made wine investment an important choice forinvestors. At present, there are many issues about wine investment, as a newmode of personal investment, is worthy of research and exploration. Therefore,this article is intended to focus on wine investment and carries out systematicanalyses on the value of wine investment, the investment model and investmentrisks from the perspective of investors. The main work of this paper includes:First, draw comprehensive comparisons among different investment modessuch as investment in real estate investment, securities investment, publicplacement, private fund, short-term financial investment, gold investment andwine investment. A retrospective analysis is made on the income of wineinvestment in particular. The research shows that wine investment, as a newinvestment product, due to its noticeable characteristics of scarcity, being lessaffected by the international finance and policy control, higher investmentincome and lower investment risk, has shown its investment value and growthpotential in a more apparent way. The income of years of wine investment:return rate of wine investment is significantly higher than the income of otherinvestments.Second, an analysis is made on China's wine investment market from therespects of demand, trade, investment and collection. It is found that followingEurope and North America, who have plenty of high-level wine consumptionmarket, the domestic wine market is very active and showing great potential fordevelopment. There is a noticeable rise in wine collection and investment. Third, a comprehensive comparison is made on the four wine investmentchannels of spot wine, future wine, wineries, wine funds from the perspective ofbasic characteristics, investment risk and investment mode assessments.Thorough analysis on wine finds and wineries investments are made too. Theresearch shows the wine fund investments could be taken as the priorityinvestment model due to its professionalism, standardized management andlow-risk.Fourth, based on the sample data of Liv-exl00index and Liv-ex500indexfrom January2006to December2011, the development trends and Fourier-cycleof wine investment are analyzed and the analysis show that there exists trendand periodicity in wine investment. Full advantage should be taken of the timingof wine investment to make reasonable decisions on long-term or short-terminvestments.Fifth, analysis has been made on the main risks of China's wineinvestment from the perspectives of industry cultivation, professional techniqueand investment strategies and it shows that the industrial development riskreflects in that the wine investment industry chain has yet not formed and therelack relevant industry norms and mechanisms. Meanwhile the wine funds havejust begun and needs further improvement; Professional and technical risksinclude: wine investment requires professional knowledge. There exist risks ofdiscrimination and saving for spot wine investment while it's hard to grasp thepricing rules in future wine investment; Risks of investment strategies mainlyinclude the opportunity, professional timing, combination, exchange rates andpolicy.Sixth, the wine investment model in china has been explored. Theexploration shows that at present, the recommended mode of wine investment inChina is wine funds investments. In the investment process, strict investigationshall be made on the fund's qualification and standards. Investment periodshould be set and be prepared of long-term investment. The tax factor should beconsidered too.