The majority of us purchase wine because we enjoy consuming it, but folks in the know can actually turn a real profit when the invest wisely in wine. Wine has often outperformed the securities markets, with certain bottles having the potential to produce returns upwards of 30 percent in a single year, with particularly rare Bordeauxs sometimes capable of increasing in value by 400 percent. Of course, generating this sort of profitability entails acquiring a good amount of knowledge and doing significant research.
The following paragraphs outline some of the key considerations wine investors should keep in mind.
1. Go For The Finest Bottles
It almost goes without saying that the top wines from marquis producers tend to have the best chances of significant appreciations in value. But, that is not to say that an investor should simply buy well-known names without further research. There are always some smaller houses that produce tremendous investment-quality wines.
2. Familiarize Yourself With Wine Producing Regions
When it comes to wine investment, Bordeaux is known for producing some of the finest.
3. Deal Wisely
Make sure you purchase only from highly-regarded wine purveyors. Prior to entering into a deal, be certain that you are working with an honest seller with an established reputation.
4. Solicit Expert Opinions
Always pay attention to what wine critics and other experts in the field have to say about specific wines and merchants.
5. Original Products Are Best
Attempt to buy only unmixed cases that are still sealed in their original packaging.
6. Learn Proper Storage Techniques
Keeping your wines in optimal storage conditions will help keep the investment in top condition for years to come.
7. Insurance Matters
Take steps to have your investment wines insured for its likely resale value, or, at minimum, for your own purchase price.
8. Timing Is Critical
Conduct sufficient due diligence to know when the best time to sell your wines is likely to be. Monitor trends and look to the future. Though many assume that wines of this type should be held for several years, it is necessary to consider the cost of insurance and proper storage of wines when assessing the profitability of a particular bottle.
9. Vigilance Against Fraud
Always insist on proper documentation for investment wines. There are many fraudlent actors in this realm who might attempt to charge a premium for wines that are not what they appear.
The true payoff for any wine investor comes when a sale is made. Spend sufficient time learning what sorts of prices similar wines have commanded in recent sales, including auctions. When it becomes clear that a profit is possible, go ahead with your transactions and toast your success!