Investing in fine wines
People have been investing in Fine Wines for many years, like fine art and antiques; you would either have to be an expert on the subject or be prepared to make expensive mistakes.
For the investor a fine wine should have the following attributes; be from a limited production, be produced under strict regulations, be from a recognised system of classification, and have a complexity of taste and longevity that improves its quality with age.
When investing in any Fine Wines the quality, purchase price, quantity produced, Château and vintage are of primary importance, and once bottled the atmospheric pressure, temperature and overall condition of its storage is as equally important.
Experts within the fine wine industry reckon the best wine investors can see returns of up to 30% a year from some bottles of wine. Like shares, fine wines can fall in value too, but at least you can drink any negative equity and enjoy some nice cheese!
Demand for fine quality wine exceeds supply and it is strictly controlled. No house in the world can sell direct to the public due to personal and premises licence laws, so you will have to buy your fine wine through a win merchant. The best ones tend to be the most visible and well known so let your broker be your mentor, choose the one you feel most comfortable with and the wine that will taste and cost more with age!
What are top quality wines? Less is more when you're buying to invest in wine, so get hold of the top wines from the top vintages. The usual investment unit is one case of 12 bottles. If you have £2,000, buy two £1000 cases rather than ten for £200. Your first wine investments should be Bordeaux. This is the seat of the finest red wines and has a track record for bottling the most outstanding produce in the world.
How do you invest in fine wine
Over the next few weeks I will be adding information on the above adding some great links, lets find out what wine is worth drinking and what wine is worth investing in! Because there is a limited supply and high worldwide demand for really top quality fine wine, this is what makes fine wine a great investment!
Fine wine producers will not generally sell direct to members of the public so you will need to find a wine merchant (also known as a wine broker). A Tidy Wine Broker will be able to advise you on wine investment choices and provide valuable subject expertise on fine wines. Just make sure you find out exactly how much it is all costing you before confirming any orders!
Where to keep your fine wine once you have invested
If you are thinking of impressing your friends and family by investing in a fine wine cellar, you might have to think again! 99% of fine wine brokers will advise you to keep your wine investments in a temperature-controlled bonded warehouse, either an independent one, or one run by them. Basically this is because fine wines can be ruined if they're not stored at the right temperature, humidity and light.
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