The new interest for wine investment
Wine: a promising investment
In a time of economic uncertainty , investment is a frightning practice. The stock market in these times has proven sorely undependable at returning profit.It seems that everywhere, traditonal investments are dropping rather than rising . At times like this, investing in real, physical assets is often a smarter move than stocks . Fine wine investment is suitable to consider as an investment option. It is also suggested as an alternative investment by Money Observer.
Why fine wine? Wine prices have an obvious tendency to increase with age. This is especially true of fine red wines such as those from Bordeaux. When examining such wines it is very important to look at several factors. First, location—where a wine is produced (its terrior) is one of the first aspects of the wine that is considered, because the actual growing location of the grapes is a strong determiner of quality. Second, vintage, or the year the wine grapes were grown. Most red wines are not released for at least 2-3 years after the year the grape is harvested. Wine is strongly influenced by changes in weather between years. Taking the same wine, from the same vineyard, one year can be rated “excellent” and the next year can be a disaster. The ultimate quality of wine is truly in the hands of nature. This makes it vital to stay informed. Knowing your vintage quality is key! Third is the tried and true rule of supply and demand. The most valuable vintages are produced in very small-scale quantities.
Once your vintage type, year, and location are elected, when and how should you buy the wine? One of the best ways is to buy En Primeur. This means to buy the wine before it is bottled. Wine prices often shoot up after bottling, and the smart investor buys at the cheapest, right?
If buying in the EU , it is best to buy the wine “bonded” so it will be free of Duty and VAT taxes. Companies , such as Berry Bros & Rudd offer En Primeur wine investment services. They can provide a safe place to store your wine. Wine storage is key to maintaining your investment. Many high quality wines get ruined by improper storage conditions. Fine wines are sensitive to temperature and light and should be placed in a temperature controlled cellar. Set out building your alternative portfolio with fine wine investments !
