Is Fine Wine a Smart Investment?

Many wine collectors became involved in fine wine investment purely by accident. In many cases, things started when a few bottles were given away in order to make more space in a collector’s wine cellar, thereby spawning a new collection. Throughout the entire investment process, wine collectors can realise an excellent profit, often much higher than they expected. However, whenever there is a dramatic rise in the price of fine wine, groups of buyers will inevitably begin to purchase it for investment purposes. In recent years, this occurrence has caused fine wine to become one of the most popular alternative investments around, and more money is flowing into wine funds than ever before.

When it comes to fine wine investment, most investors don’t actually have any intention of drinking from the collection, but instead view it as a portfolio. As a matter of fact, some buyers may not even be able to point out the distinction between a Burgundy and a Bordeaux. In addition, properly stored cases should be kept in a professional storage facility where the temperature and humidity can be carefully controlled, which is important to protect the wine’s value and keep it in condition for sale.

Alternative investments like fine wine have been generating healthy returns in recent years. For example, even throughout the recent economically bleak global forecast, there has been a steady flow of annual returns on Wine Investment Funds. A reputable fine wine investment fund will also give investors regular updates regarding the fund’s contents.

Just like every investment opportunity, fine wine investment also comes with its own potential drawback: fees. With funds this often includes 2% of management assets, with an additional 20% taken from profits. These fees are close to the charges made by hedge funds. And remember, investing in fine wine can generally bring forth greater benefits if you go for the best wines around. People who want to save and invest in lower quality wines are exposing themselves to greater risks and may do better to buy for consumption and enjoyment. In general, if you want to increase your chances of succeeding in fine wine as an alternative investment, opt for well-known producers and first-growth products.

Similarly, enlisting a professionally managed wine storage facility is of absolute importance if fine wine investment are made for business purposes. This applies to both individual collectors and wine funds. Professional storage is highly recommended by experts in order to preserve the wine’s market value and is considered imperative by most serious buyers.



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