Thursday, September 29, 2022

How To Invest In Fine Wine

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You Need To Do Your Research First

How To Invest In Fine Wine

We strongly advise that when entering into a wine investment you do the proper research. Use websites such as www.wine-searcher.com and cellartracker.com to quickly gauge whether you are being quoted a fair price. More importantly still, always use a reputable company with a good track record if you want to avoid getting scammed.

What Wines Are Collectable

Investment-grade fine wines are distinguished from mass-market peers by their ability to age, their value on the secondary market, and producersâ long track record for excellence, according to Brian Ward, director of wine for the Winston Art Group.3 In the global hierarchy of fine wines, most collectors look to the famous regions of France for truly transcendent bottles. Bordeaux, which produces some 900 million bottles yearly, or nearly 1.5% of the worldâs wine supply,4 leads the pack, usually followed by Burgundy.

However, only a tiny fraction of Bordeaux sold comes from any of the five First Growth chateaus deemed to be la crème de la crème of collectable wine â Chateau Lafite Rothschild, Chateau Latour, Chateau Margaux, Chateau Haut-Brion, and Chateau Mouton Rothschild. First Growth wines typically perform well in the secondary market, and are renowned for stellar consumption quality.5 But in recent years, Burgundy, where the acreage is one-quarter the size, has surpassed Bordeaux at auction in top lots, with brands such as Domaine de la Romanée Conti, Leroy and Armand Rousseau.

Investing In Wine : Facts You Need To Know

Winemaking and consumption are some of the things that were never buried in time. Until this day, its loved and enjoyed by so many. A lot of striving wineries are experimenting with different methods and flavors to cater to the ever-changing modernization.

Its no surprise that many business folks and even startups are looking into investing their own. But before doing so, here are some important facts that you need to know about investing in wine.

Lets define wine investment.

Wine is like precious metals such as gold. Its value goes up and appreciates over time as it ages. This is the very reason why people would like to invest in wine. Its like keeping yourself a stash of gold bars in your cellar.

If youre a wine collector, you can buy wines and stock them up to sell in the future at a higher price. You can also opt to stock them in wineries where theres a specialized facility to keep the wines in shape in the coming years. This way, it becomes more profitable to sell.

If youre a serious wine collector, you should investigate secure and professional wine storage facilities like the one shown above. They ensure that your wine is kept securely under lock and key, and at the correct require humidities and light levels for a long term investment.

If collecting and storing wine is none of your interest, you can opt for another route, which is to invest in blue-chip wine stocks. Your money grows without having trouble to collect and store the wines of your choice.

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The Pros Of Investing With Vinovest:

Investing in wine with Vinovest is the top option right now for those looking to diversify in this alternative investment. Heres a few reasons why:

  • Vinovest is insured with an FDIC equivalent for wine, protecting each bottle against breakage and loss.
  • Inspection and authentic review of every bottle by experts.
  • Secure and conditioned storage facilities utilized for your wine investments
  • You actually own physical bottles of wine, not just shares of something
  • You can sell your wine at any time, but the Vinovest experts will recommend optimal times to buy or sell wine.
  • Very low correlation to the stock market volatility.
  • Open to all investors and can start with a low minimum entry of $1,000. Getting started does not require a massive upfront investment. And the minimum pending your goals, can net you between 45-60 bottles of wine.

Whats cool about Vinovest portfolios is the recommended time horizon is completely customizable. Their algorithm will be able to select bottles for people that want to hold their wine investment for as short as two years or as long as 30+ years.

Vinovest: Investing In Fine Wines As An Alternative Investment

How to Invest in Fine Wine

Updated: by Financial Samurai

During shelter-in-place, alcohol sales skyrocketed as millions of Americans entertained themselves at home. The rise in alcohol sales got me thinking about whether there is an investment opportunity in wine. After all, when times are good, people drink. And when times are bad, people might drink even more!

It just so happens there is a way to invest in fine wine via a platform called Vinovest. As someone who is a fan of wine and lives only 1.15 hours away from Napa Valley and Sonoma, I am excited to learn more about their platform through this sponsored post.

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Investing In Wine Every Year

I continued to invest every year, gradually increasing the amount, partly as prices were increasing in the market and partly as I got more interested.

The next excellent year was 2005, and again I invested heavily around £100,000. My investment by then was approaching £1m.

In 2009 and 2010 the market became overheated. There were too many investors, the prices were pushed too high, the chateaux got a bit too greedy and en primeur was sold at too high a price. I got caught up in the hype and invested £500,000 in 2009 and another £500,000 in 2010.

The market collapsed in 2011. The Liv-ex 100, which monitors the market, showed a drop of 30%. I didnt lose out financially because I hung on to the wine. I just sat on it.

Costs And Considerations When Investing In Wine

Fine wineâs particular time horizon has to be considered before investing. Beginner collectors should be prepared to wait six to ten years before selling, as most fine wines need time to mature before reaching peak drinkability and demand in the secondary market.11 In addition, most wine auction sites prefer to sell wine in sets of three, six or 12 bottles, with certain exchanges requiring full cases of 12 bottles. Purchasing with the intention to sell requires at least three bottles.

Potential investors should also consider the costs of building and maintaining a wine cellar. âImproper storage can destroy asset value,â says Curtis. Between the costs of a cooling unit, racking and installation, starting a wine cellar could cost $10,000-$15,000 in initial outlay, with additional annual maintenance upkeep and insurance costs.12

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What Is A Wine Investment

Before I dive into how you can invest in wine, its important to understand wine as an investment.

Yes, wine can be a delicious complement to a great meal or even for some social gatherings. However, investing in fine wine has been around for a long time but was mostly considered to an elite group of people or connoisseurs.

However, as the alternative investment movement continues to grow, so do the interests of people looking to diversify their money into other assets like wine.

And the concept and goal of investing in wine is quite simple: you buy specific bottles of wine and then store them for a particular time with the goal to then sell them at a higher price.

But there is an easier way to invest in wine with Vinovest .

The Pros Of Investing In Wine

Wine is a fine investment | Business School

It is uncorrelated to the stock market

Many investors start with investing in stocks and then look for an asset which will appreciate but without the associated volatility. It also helps that wine has substantially outperformed the S& P 500 over the past decade. Fine wine investment also means you can diversify your assets into an area which will always be in demand. Wine is considered a luxury that many cannot do without.

It is tax free

Countries like the UK, do not charge capital gains tax on profit within the first 50 years of the wines life. If the wine does last or mature over 50 years then you will be liable for tax if you profit from selling it.

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An Advanced Guide To Investing In Fine Wine

True connoisseurs already know that wine isnt just wine. A full-bodied Californian Cabernet Sauvignon, for example, is nothing like an effervescent Chablis from France. Likewise, different variables must be accounted for when investing in wine futures versus, say, pre-arrivals. Below, well cover those and a few other unique situations that may require extra care and consideration.

Tips For Investing In Fine Wine

If you are looking at investing in fine wine for the first time here are a few tips to bear in mind:

  • Remember fine wine is a very stable market so make sure that you are happy to hold your fine wine investment for a number of years to enjoy optimum returns.
  • Diversify your wine collection to include staple blue-chip wines which enjoy an established secondary market such as the Bordeaux First Growths and Burgundy with wines from Italy, Champagne, Rhone and the USA to enjoy growth in regional trends and emerging markets. Wine portfolios can also be diversified by vintage, find out more about diversifying a fine wine portfolio in our Guide to Collecting and Investing in Fine Wine.
  • Get advice and stay informed the fine wine market is more transparent than ever before, but a fine wine expert will be able to guide you on where the best opportunities lie and any influences on the price of your wine
  • Be fraud aware make sure you work with a reputable fine wine investment expert or merchant Vin-X has market-leading systems to protect fine wine investors and is a member of the Wine Investment Association.
  • Ensure that your wine is correctly stored, ideally in a specialist bonded storage facility and that your wine is insured.
  • For more information speak to a member of the Vin-X team on or visit our contact page.

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    Selling A Wine Investment

    Customers come to us to sell their investment wine for so many different reasons, from cashing in a few special bottles they never got round to drinking to releasing equity from a £1 million investment portfolio. Whatever your position, we aim to make the process transparent and totally hassle-free.

    To get going, fill in our quick online form, give us a call on , send us a message through our WhatsApp feature 07920 442230 or just drop by for a chat. Our decades of experience in the wine industry and extensive network of global buyers place us perfectly to achieve the best possible exit price for your goods. We also understand the importance of swift settlement, which is why we operate the fastest payment terms in the entire industry and our dozens of 5-star google reviews are testament to this fact.

    Above all, we value our clients trust, and we are proud that a large proportion of our business comes through word of mouth and recommendations from past clients.

    What Are The Best Wines

    Cult Wines: How to Invest in the World

    According to theLIV-EX Power 100, in 2019, Armand Rousseau took the top spot of wines to invest in. If you have never heard of Armand Rousseau, dont worry neither had I. Fortunately, there are fine wine connoisseurs that do all the legwork for us and create easy to understand investment charts.

    For those of you with more experience in wines, you will be pleased to know that Vinovest employs master sommeliers and data scientists who assist with creating portfolio recommendations.

    Each year, the LIV/EX produces an overview of fine wines scored in the following categories:

    • Total Ranking
    • Unique Wines Traded

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    Investing In Wines: Factors To Consider

    What factors should you look into when considering your decision in investing in quality wine? We have listed them out for you below:

    • How much you know about wine: You should have at the very least some knowledge of wine before you decide to invest in them, but its okay if you dont. You can easily make enquires from experts and conduct your own research within a short period. Just make sure you do this before you decide to invest because it will be difficult investing in something you do not understand.
    • Cost: Consider how much youre willing to invest in the wine business to know if its enough to bring you the desired returns on the long run before you finally make the decision to invest.
    • Proper Storage: You already know that older wines give greater value as time passes. A good wine storage system, however, is what guarantees that. Make sure that you count the costs properly, and that you have good storage equipment like CABLE WINE SYSTEMSluxury cable wine racking in a bid to ensure the best of your investment in wine.

    Defeating Breakage And Spoilage With Storage

    When you are storing wine you’ll drink within a few weeks, you can keep it in a wine rack for display in your home. However, keeping your wine in optimal salable and flavor condition for long time periods requires more careful storage. According to Wine Spectator writer, Bruce Sanderson, in “The ABCs Of Storage,” wine will produce small, flaky crystals if exposed to excessively cold temperatures, although this is less likely to happen in wines that are cold-stabilized.

    On the other end of the spectrum, a room that is too hot could cause a rapid increase in the time wine takes to reach its premium flavor and salability. If your wine matures too fast, you’ll have to sell it faster, reducing the likelihood of making big profits in the future.

    To properly store wine, you need a dark area with optimal temperature and humidity levels. This can be accomplished in your basement or a dark closet if you live in a moderate climate. To decide whether your area of the country is suitable to store wine, talk with wine cellar managers in your area. If you don’t have optimal conditions, you will need a wine cooler, which for a large collection could run into thousands of dollars. You’ll also need substantial space.

    If you don’t have the space to store your wine collection, you will want to contact local wine storage facilities for pricing, storage capabilities and the amount of insurance included.

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    What Are Investment Wines

    An investment wine should have all the traits of an age-worthy wine, but it also should be in demand when it sells. The most in-demand investment wines are fine Bordeaux and Grand Cru Burgundy. Prestige wines such as these start at $600/bottle and are offered in 6 bottle wooden boxes. When buying in this market, buy by the case and do everything you can to create a paper trail of provenance to show the wine is not fake. If you plan on investing in French wines, its importantant to make your wine easy to sell on the internationl market.

    Is My Wine Worth Cellaring?

    Besides wines from France, Napa Cabernet Sauvignon and tête de cuvée Champagne are also very collectible. When you buy wines from regions other than Burgundy and Bordeaux it is important to buy flagship wines successful wineries that have made a name for their respective region. While flagship wines might not appeal to your sense of discovery, they are more likely to sell 10 years down the line.

    Cult Wine Collecting

    In recent years, collecting US cult wines have offered great investment turnaround because of a growing international appeal. A few cult wines that have become knockout successes are:

    • Sine Qua Non

    This Is The Best Way To Invest In Fine Wine

    Fine wine investment: an introduction

    At Your Money Geek, we have historically been reluctant to discuss investment opportunities.

    Why?

    Because its tough for us to get excited abouttraditional investments.

    Conventional wisdom today is to index and chill, i.e., dump all your money in Vanguard index funds and never look at your statements. It is an investment strategy that, frankly, I just cant get on board with.

    Its not that I advocate for day trading or market timing, because I dont!

    Instead, it is that I am risk-averse, I am self-employed and have owned my business my whole adult life. As a business owner, you have to compare investing in investments to investing in your own company.

    For example, if I have some money to invest, should I put it into Your Money Geek to grow traffic and revenue or send it to Wall St. to be invested in other peoples companies?

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    The Pros And Cons Of Investing In Wine

    As with any investment, there are always pros and cons. No investment is perfect or comes without risk. Instead, you want to look at your personal goals for investing, how interested you are in diversification, and that the rewards outweigh the risks.

    Here are just a few quick insights into the pros and cons of wine investments.

    Pros of Wine Investing:

    • Diversification from the stock market
    • Strong performance in the last 30+ years
    • Average wine investment returns over 12%
    • Lower correlation to stock market performance

    Cons of Wine Investing:

    • Choosing wines to invest in is not easy
    • Storage issues and knowledge required
    • Long-term horizon of investment
    • Unregulated market

    However, many of the cons when it comes to knowledge and storage have dramatically changed thanks to the platform Vinovest.

    Vinfolio Investment Report Volume One 2021

    As one of the countrys leading fine wine companies, we are thrilled to share the first volume of our comprehensive Fine Wine Investment Report outlining the current state of global wine market investments. This guide will explore the best regions to watch, wines with impressive recent growth, and Vinfolios predictions for what wines will do well in the future.

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