What Beginners Need to Know Before They Make Investments in Wine?
Wine attracts those who simply enjoy drinking it with friends and it also attracts the connoisseur who purchases and stores wine for its flavour and also for investment purposes. It is not something that everyone thinks of when they think of wine but good wines are highly collectible and if cared for properly, can represent a wise investment but for the beginner, where do you start?
Take Some Decisions
First of all, you have to decide what kind of investor you want to be. Are you going to invest in wines that you like with a view to sharing them with your friends on special occasions or are you investing simply from a monetary point of view, hoping to make greater gains in the future?
You will have to spend time on your research. Learn about vintage and why that is important and how a wine’s vintage can affect its value. Rare vintage wines can command a significantly higher price as there is more of a market for them. Study the different wine producing regions, grapes, and producers and consider their reputation for producing consistent quality wines, all of which can influence the value and long term potential value of your wine. It is also a good idea to try to build a diverse collection around popular regions and vintages. Research should also take into account the platforms where you are able to trade your wine and it may be prudent to look around the platforms to determine the cost of particular vintages from particular regions.
Your wine will have to be carefully and properly stored and it is often not sensible to do that at home. You have to consider temperature and light requirements to keep your wine at its best. Flavour and value can be impacted when the wine is incorrectly stored. It will also help the value of your investment if you can evidence the fact that your wine has been stored correctly.
You may want to consider the outlay, not only in terms of the purchase costs but if you have storage costs and insurance costs added to that too. People who are serious about investing in wine, routinely invest several thousand dollars, but remember, only invest what you can afford and buy the best of what you can afford.
As with any purchase, you are well advised to shop around and check out prices. Make sure that you are buying from a reputable seller, however.
Research more on Guide to investing in wine
Wine can be a fun and interesting investment but you have to be realistic and remember, as with any investment, returns are not guaranteed and the value of your investment could go up or down. Investors in wine often hold their stock for a number of years prior to selling. Wine investment can be an excellent addition to an investment portfolio as it is always a good idea when investing to spread your risk across multiple sectors.