Fine Wine Investment: Key Tips

Most newspapers now have fine wine investment news featuring fairly regularly in their financial pages. From being a niche investment it has evolved into an attractive alternative to the returns provided by traditional investment assets such as stocks and shares, property etc., all of which have remained volatile throughout the global recession.

In the rush to find a safer alternative asset class, it is wise to consider the following points before you place your hard earned funds:

Not all wines appreciate in value. Only the top wines of each vintage can yield good returns. Bordeaux wines make up more than 70 percent of the fine wines market.
Consider the wine’s rating/score. A high rating/score from influential wine critics, such as Mr. Robert Parker or Ms. Jancis Robinson, could create a demand for that vintage with the inevitable rise in prices.

Keep an eye on price trends. In general fine wine prices rise but some wines do see a fall in demand. In a given vintage, different labels could see a different rate of price increase. For instance, a 2005 Lafite may appreciate at a different rate from a 2005 Mouton. Even within a label, demand will vary. For instance, demand for a 2005 Lafite is greater than the demand for a 2007 Lafite. The fine wine investment market consists mostly of Bordeaux vintages which have, over time, earned their reputation as quality wines that improve with age. Ensure that you only select the best Bordeaux from the best vintages.

Beware of fake wines! Experts believe that around 5 percent of the fine wines available are just plonk in original bottles. Buying from a reputed distributor could save you a lot of trouble.


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