The Australian Wine Index is a story of passion for wine and business acuity. Founded by two avid lovers of fine wine, the business partners have over 30 years of experience in the financial markets and international marketing between them.
Australian Wine Index (AWI) is delighted to announce an exclusive 5 year partnership with Shanghai International Commodity Auction Co., Ltd (GUOPAI) and Shanghai South Latitude Winery Pte Ltd (NANWEI). Through this partnership AWI’s investors will obtain exposure to the vast and ever-increasing Australian wine appreciative Chinese market through regular Fine Wine Auctions held in central Shanghai.
Australian Wine Index (AWI) was opened to respond to the increased demand for fine wine in the Asia Pacific region. AWI is dedicated to sourcing the most sought after wines found in Australia. We have forged strong ties with vineyards throughout Australia, and are able to acquire the latest and best-known Australian fine wines at competitive prices.
It is argued here that the value of wine as an investment good has been understated for the following reasons. Firstly, as the quality of any given vintage of wine is largely known in advance, wine investors will not invest in poor quality vintages. This means a wine price index based on the return to all vintages of wine understates the return achieved by the typical wine investor.
Australian wines are mainly produced in South Australia, New South Wales and Victoria, but each Australian state and territory has some wine production. The variety of grapes growing conditions allows Australian Wine Index produce all of the major wine types across the gamut of red, white, sweet dessert wines.
For quality and service, Australian wine index remain the best place to buy wine. The average price of investment quality Australian wine is much lower than that of investment quality Bordeaux wine. Australia’s finest glories are the great, classic old vine cuvees of Shiraz and Grenache from South Australia, particularly those from the Barossa Valley, McLaren Vale, and Clare Valley.
Even if the return to wine is lower than standard financial assets and the risk higher, if including wine in an investment portfolio reduces portfolio risk, wine should be considered a worthwhile investment class.
Ever since Krasker (1979) first posed the question of whether wine should be saved or savored, the main theme of the return to wine literature has been to say wine should be savored and not saved. This paper has argued that the true value of wine as an investment good has generally been understated because: (i) quality vintages can be identified in advance and investors hold only quality vintages; (ii) wine investment generally enjoys a special tax status in these countries; and (iii) including wine in an investment portfolio allows portfolio risk to be reduced. Wine should always be savoured, but those who choose to both save and savour wine may be making a wise decision afterall.
Australian Wine Index (AWI) was opened to respond to the increased demand for fine wine in the Asia Pacific region. AWI is dedicated to sourcing the most sought after wines found in Singapore.