How to Enjoy Wine as an Investment

When people think of investments, wine may not be one that typically comes to mind. However, as wine ages it grows in value. Possessing a very popular year and vintage of wine can be a solid investment move. A bottle of high-quality vintage wine can sell for several thousands of dollars a bottle. Investors may wish to purchase wine for personal reasons and hold on to it or may auction it off with a considerable return on investment.

Purchasing fine wine is a way to diversify an investment portfolio. Wine as an investment commodity has enjoyed great popularity in recent years. It is considered an alternative investment which can be very profitable for investors who have knowledge of which wines are valuable and hold their resale value.

Purchasing and reselling wine

For investors who wish to purchase quality wine but lack the experience to know which wine to invest in, a wine consultant, broker, or merchant can help to inform the buyer of the premier wines that will work well as a financial investment. The great majority of investment wines, about 90 percent, are produced by the Bordeaux region of France. However, as more global wines find their way to market, the selection of wines which may be a good investment are growing. Vintage wines from the best collections can be sold for thousands of dollars per bottle while the broader termed “fine wines” generally sell on the market for well under $100 USD.

Purchasing shares in investment wine

Wine is an investment that increases in demand as the price rises. Good wines in which to purchase investment shares include vintage port wines, Bordeaux, and Burgundy wines. These wines have proven themselves as sound investments in that they hold their value over time and are agreed upon by experts in wine to be among the top-quality wines. Before making an investment, prospective wine investors should consult with an expert in the field to make the best choice of wine to invest in.

Deciding upon wine types

Investors must find a wine that is a good fit for their investment dollars. Wines mature at varying levels of time. Some wines, if left past their maturity date, will spoil. Then, there are other wines that age well for 20 or even 30 years. It will take much research and expert consultation to choose the wine that best meets the investor’s needs. There are many investment wine firms that are knowledgeable about the top investment wines and offer a wide variety of choices. If in doubt about which wine type will be a good investment, consult an expert wine merchant who has years of experience and expertise in the buying and selling of fine wine.

Advantages of wine investment

Wine investors can be assured that their commodity will likely increase its value with age and has little chance of dropping in price. Unlike stock, the investor owns more than just a piece of paper. Wine is a tangible asset. The stock price will not fall, and as long as the wine is cared for properly, there is little chance of losing in the investment. It is almost a given that the buyer can sell the wine at a much higher price than was paid.

Disadvantages of wine investment

Wine can be a wise investment but there are some drawbacks. One of the main concerns for the investor is that there is no return on investment until the wine is sold. Then, there is also the cost of storing the wine and purchasing insurance. Buyers could very well lose money while waiting for the wine to mature and its value to appreciate. Most U.S. States will only allow private wine to be sold at auctions. Therefore, it may be hard for investors to arrange to sell the wine once they have decided to cash in on their investment. There are sellers out there who prey on those wishing to purchase wine for an investment. Taking advantage of the investors lack of knowledge, they try to sell off-vintage or lower-quality wines at exorbitantly high prices.

Considerations

For the investor who decides upon wine as an investment, there are some important considerations for making sure the wine holds its value. One of these considerations is making sure the wine is properly stored. The temperature, light, and humidity conditions where wine is stored are very important in maintaining the safety and value of the wine. Investors can always choose a bonded storage facility to store their wine if they do not possess proper storage facilities in their own homes. Wine can be a smart investment and a good way to diversify a portfolio; however, buyers should be cautious is their investment purchases and gain advice from a qualified wine expert before making a purchase.

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