It’s been a dream of mine to invest in wineries. Ever since a gal-pal made me taste a ‘Ridge Monte Bello’ back in college, I immediately took to it. When you first sip a wine to the time you gulp it down (that is from the tinge in your tongue, to then the gringe of your teeth, then the hinge in your senses). You go from feeling inquisitive to being elated! It’s the beginning of a love affair of sorts. The advantages of investing in wine include from being in the luxury industry (it is a savoured product) and thus you’re in contact with the big-wigs, to handling prefixed quantities at a time, you get to specialize in one type so your costs are minimized or you can even diversify your portfolio by having many wines and longevity. Here are two things you need to understand before you foray into this industry:
Firstly, purchase the very best you can invest in. Some would insist that you may start off with châteaux of Bordeaux, and that’s an excellent tip, at least in terms of the likelihood of ticking over a decent, steady profit margin (Bordeaux Grand Cru Classés account for the largest part of the investment-grade market for fine wine at around 75 per cent). The key is to invest in wines with a record, those which have a truly global secondary demand. For example, such as Château Lafite Rothschild, Mouton Rothschild, Margaux, Latour, Haut-Brion etc. have provided sound returns for centuries. The top Burgundies and Rhones have done well over the past five years, as have top wines from Champagne. Also Tuscan wines are a good gamble too. Such as Sassicaia, Tignanello, Ornellaia have done very steadily in recent years. Thus, invest in the best that you can afford, and it’s worth bearing in mind that a smaller quantity of the finest wines will serve you better than cheaper cases which will hit you in the pocket when you tot up the annual insurance and storage charges.
Secondly, always check on the prices. The cost of investment-grade wines can vary dramatically, by as much as 20%. Therefore when purchasing for investment purposes, its vital to shop around and shovel out the best market price. First get a whiff of these prices by doing a quick online search. Make sur you do your homework, even if you choose to invest with an experienced merchant. Remember the money is yours! Two things to keep in mind (further) is that provenance and quality are the determinants of the value of your investment.
Hoping the drunkard in You has awakened! There are a number of pros and cones when it comes to placing your capital in a nice bottle of wine. You can never fail in your investment with this product. Above all, you will completely own your bottle, meaning you can ensure proper care and storage as opposed to placing your money with a financial adviser. As you’ve heard the saying, wine gets better with time! A well-aged wine is a highly sought after asset among serious collectors!