Romantic traditions become modern investment strategy

As an old English tradition, a newborn son would be given a case of “claret” that would mature as he grew up. On top of that, grandparents, uncles and relatives would often give more bottles or even cases of fine wine to the child so he would have a proper cellar by the time he graduated from university.

Having a wine cellar can help a person learn to enjoy the benefits of this remarkably well-performing alternative investment. For example, only two decades ago, the cost of a first-growth Bordeaux was typically only a few hundred pounds. Today, the same bottle of wine might be worth £2,000. In addition, there are countless stories from wine merchants who have seen fine wine investments appreciate by as much as 500% in recent years.

The majority of wine merchants will tell you that fine wine investment is not generally vulnerable to the common factors that influence bonds and stock market prices. However, fine wine is comparable to many types of alternative investments, such as fine art, real estate and other collectibles. Also of note, in recent years newcomers to the fine wine investment market, such as Chinese and Russian buyers, have been identified as having a major influence on the rising prices of Bordeaux futures contracts.

In the United States there are no public investment pools or mutual funds that deal with alternative investments like fine wine, making it more difficult to make fine wine investment a part of your investment portfolio. However, US buyers can still satisfy the oenophiles in their hearts by looking into overseas ventures. In this way they may be able to find investment pools that can generate better returns. Another option is to look for fine wine investment expert who can help you decide which fine wine investment is best for your unique purposes.

Owning cases that are properly stored in cellars, or buying futures contracts for cases that are scheduled to be delivered after a year or two can be some of the best ways to invest in fine wine. For wine futures, think of them as a sort of promissory note that is only as good and reliable as the issuing merchant. Keep in mind that there is a possibility that the merchant could sell more futures than was purchased, or worse, it could be a fine wine investment scam, so be cautious whenever you are investing your hard-earned cash.

If you want to put your money in the safest alternative investment possible, it is wise to work with a well-established fine wine investment dealer, especially since we are often talking about a sizable amount of money. Just as you would with other investment platforms, always do a large amount of research prior to trusting someone with your money – or your investments.



Leave a Reply