Policies and terms of investment
- CISBIT ApS will issue an invoice, to a natural person or company, for payment of the wines that are to be invested in. The invoice will be VAT / Tax free for international customers and once the invoice is issued, the client has three working days to carry out the payment.
- When the client is a personal investor, the invoice will explicitly state that all cost of transportation, insurance and tax declaration is the sole responsibility of the client. (This apply only in the cases the customer like to import the wines in his country of residence) Note: in case of wine investments, the wines should never leave our storage, but the obligations to bear the costs are required to be stated in the invoice)
- Payment of the investment returns: Before we offer the wines to our customer, the investor will know via email what is going to be the sales price of their wines, the process of selling the wines can take from approx. 1 week up 3 months. After the wines are purchased and paid for by our buyers, we process the payment to the investor. In order for the payment to be processed, the Investor shall issue an invoice for the wines sold to our company and we will immediately facilitate the payment. Our company will request the investor through a purchase order to sell their wines, in this way the sale process of the investor will be reduced to an email confirmation.
- CISBIT ApS do charge a commission fee of 10% at the time of purchase, this 10% will already be included in the sales price and we will charge an extra commission fee of 10% when the wines are sold to our customers.
- The annual cost of storage is 3 Eur/bt to be paid in the first purchase. This payment will have to be made annually. In case the investor has more than 300 bottles stored with us, the cost pr. bottle will be reduced to 2.5 EUR.
- Wines can go down, as well as up in value, and there are many things that can influence these price movements. We would urge you to read around the subject fully before making a decision, and we will be available to answer any questions that you may have.
- For specific financial advice, the tax implications or other financial element of wine investment, it is important to speak to an accredited financial advisor.
- In case the investor wishes to return the investment made, they will be subject to the process of selling the wines where a 10% commission fee is applied, regardless of the sales price. We do not accept to return the cost price in any case, since the purchase is made with the objective of investment.
What are the risks of investing in wine?
- 'Investment Term’
Despite a recent trend (thanks to the volume of demand from Asia) for some wines to accrue value quickly, one should be realistic about wine as an investment. A realistic minimum term of 5 years should be observed, and because wine is a finite product, the longer one leaves it, the more (potentially) the return could be.
- ‘Lack of Regulation’
The fine wine market is not regulated, and because of this, there are many potential pitfalls, mainly stemming from bad advice and incorrect pricing. These problems are counterbalanced if you take advice from established merchants and do your research.
- ‘The Nature of Investment’
Any investment has the potential to lose money as well as make money. Fine wine is no different, and despite the fine wine market being relatively well insulated from the macro economy compared to other investments, the possibility of losing money is a real one and should not be ignored.
Why Invest in Wine?
- 'The Market’
Currently, the fine wine market is witnessing unprecedented demand, driven mainly from relatively new markets becoming involved in drinking and investment, especially that of China (and Asia more generally). Recently, the correct wines that have proven track records in accruing value have performed, comparatively, very well against more traditional investments.
- ‘When it’s gone, it’s gone’
Great wines have limited production – a chateau cannot produce more of an older vintage, that is simply not possible. Therefore if a wine is traded and consumed over several years, yet demand remains constant or grows, the net result is that the price should rise. Scarcity is a key factor affecting price.
Fine wine is unlike a stock or share – there is a tangible asset that sits in a warehouse, legally in your name.
Mazis-Chambertin Cuvée Madeleine Collignon C.Marey Liger Bel Air