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Are You Interested In Investing In Wine? Use These 10 Tips!

Wine can be a great investment if you know what you’re doing and these tips are there to help you do just that.

1) Purchase Wines With A Secondary Demand Around The World: Many wine fund managers love sticking with Bordeaux, since the entire planet is now aware of the dominant Chateaux. You don’t have to neglect other premium producers, be they from Burgundy or Italy, but stick to the highest-quality of labels that might sell in any country.

2) Remember Just Who Has Custody Over Your Stock: Having a personal account that’s fully insured and inside a bonded warehouse is your safest bet. If you decide to take the fund route, then forego trusting that company and make sure that there’s a genuine custodian watching over both your stock and your cash.

3) Be Wary Of Exit Pitfalls: Wine isn’t going to bring the value it has on a price list handed out by merchants. It brings the value that someone’s willing to pay for it. It can be smart to go through a merchant offering a broking service. If you look at their list prices and see that they charge a 10 percent broking commission, then you know that a higher volume of wine on your part means that 10 percent becomes flexible and even negotiable.

4) Store Your Purchased Wine In Warehouses Bonded And Licensed By The Government: That will eliminate your VAT and duty costs to start with, as well as simplifying your storage issues and concerns. On top of that, it cuts out your insurance costs. Even better yet, it stops your temptation to personally pull out a cork at the end of a fun evening just to test the maturity process of a wine.

5) Be Mindful Of Ages: Corks are not just physical items, but individuals in many ways. When they hit their 25th birthday, they’re not equally elastic. That means that the wine levels in some bottles might actually decline, which results in the value of a case declining with it.

6) Find Out Just Who Is Who: If you don’t actually know who your supplier or adviser is, then you should ask them for references.

7) Minimize Your Risk With Investment Funds: You might getter lucky and wind up with a better result picking a handful of cases that prove awesome, but if you want a far better shot of good performance while minimizing your downside, then an investment fund is the way to go.

8) Buy The Right Vintage: You’ll hear stories about lesser vintages catching up in value, and some of them are true, but for everyone you hear, there are dozens of accounts centered around prime stock holding their values. Owning prime stocks minimizes your risk.

9) Get The Best Quality Within Your Budget: A smaller quantity of high-caliber wines will prove to make better wine investments than cases that push your budget and possibly break it when you account for storage fees and annual insurance.

10) Stay With Proven Winners: The modern wine market has many temptations as new, shiny things…things like eulogistic quality reports or packaging gimmicks dreamed up by marketing wizards. Let any newer kids on the block have half a century to establish themselves as having staying power. You can actually make money from something ‘discovered recently,’ but keep in mind that investing is often boring, as it should be. So, stick to the traditional names while you watch already unaffordable wines become even more so, as the wealthiest investors all chase hot stocks, pushing their prices to insane and unjustified levels.

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