Wine as an investment

Wine as an investment

Finding new ways to invest money is something that should be done by all people with an interest in expanding on their wealth. Even though traditional methods such as stocks and bonds and real estate still offer some impressive returns, one method that hasn’t been explored in much detail is wine as an investment. 

There is a lot more to it than just finding an expensive bottle of wine to buy and hoping that it will quadruple in worth in a few years. The process of understanding this investment should be just as extensive as any other form. 

As a wine investor, it’s advisable to hire a manager. Regarded as an efficient investment, it’s vital to do your homework. One of the most renowned wine managers is Cult Wines, which already manages about $100 million in assets. 

Don’t use money which you’ll need for your short and medium term needs. Invest with a medium to long term view. Also ensure that you hold on to wines for a minimum of three to seven years before selling them. 

As wines mature, their prices become even higher. There is some consistency. 

Banded warehouses offer the best storage options, because they leave trails for auditing purposes and makes it easy to trace its origin. You also need to insure your wine at replacement value. 

Provenance and quality are important. For any first-time investor, French wines are a must-have. The en primeur market means investing in wines that are still in barrels. These wines may increase in value by 20-40% after only one or two years. 

Wine as an investment is quite a good way of getting returns on investment that are relatively consistent.

Categories: Financial tips