Wine is not just something to dine with – you can invest in it too

canstockphoto2442905Fine wine will always be on demand, and that’s because it brings incredible returns to high-end investors. For the average individual, wine is just a fermentation product made of mashed grapes. Its quality however, varies greatly due to soil, climate, vine genetics and age. The weather is constantly changing thus bringing variants in wine types classified as vintages. While the genetics and soil remain the same, the vines keep aging; they yield less but their fruits are more intense with every year that goes by. Good wine is not just meant to be enjoyed with a delicious meal; it is an excellent investment opportunity too, as long as the wine collector is knowledgeable enough to make the right choices.

 If you’re a starting collector looking to invest, you might want to know that not all types of wines get better with age. There’s a limit for some types as they require constant monitoring that can only be done through tasting. The results are attentively observed by the wine press that uses the data gathered to establish its value.

Are you ready to take a risk?

Nowadays, the elevated cost of wine doesn’t necessarily make it a high-quality type. This usually happens in the New World where people wrongfully assume that if a bottle of wine is expensive, it is also an extremely valuable vintage. Most collectors and investors are well aware that the key to a sensible investment is to focus your attention on limited editions. Bordeaux and Burgundy wines are being produced in extremely low amounts, and because the demand keeps rising the price for such wines will keep going up.

Fine wine is a physical asset with an intrinsic value. Because it doesn’t apply to stocks and bonds, it is considered a safe investment. At the end of the day, it’s up to the buyer to decide whether to drink or spend good money collecting fine wine. Still, don’t get confused. Investing in fine wine is completely different from investing in authorized pooled funds like investment and unit trusts. It might be wise to avoid companies that promise guaranteed returns, as no warranty can be more worthy than the actual guarantor.

Avoid doing business with amateurs

Wine is an excellent drink yet it’s an even better investment. As an investor, it is important to deal with connoisseurs only. Companies that want your money should feature a properly defined investment process. Steer clear of people claiming that you can always drink the wine if things don’t turn out as planned. The goal is to make money, and for that to happen it’s best to work only with experts in the domain.

The demand for good wine will always surpass the supply, which is usually sternly controlled. Houses will never sell to the public directly, and the process will always be carried out through a merchant. The finest types are always the most famous, so prior to starting to spend, it’s best to listen very carefully to your broker’s advice. He is your mentor and he will help you make the best choice. You can also check for best opinions. Knowledgeable brokers should never charge fees for consultations or buys because they’re entitled to a commission when it’s your turn to sell.

Endless benefits of wine investments

Unlike other types of investments, fine wine features a plethora of great benefits such as investment bonds, life assurance, and equities. They’re additionally tax-free, consumable, stable, and they pose a low risk. Because of its decreasing availability, fine wines are constantly in demand. While some people consider it a risky business, others are confident that the wine market is stable enough to make great investments.

As opposite to real estate and art, fine wine is stored in order to allow for its quality to increase. It’s equally important for the storage conditions to be ideal, otherwise the wine won’t just lose flavor, but it will also decrease in value. The bottling year and the brand of the wine are equally important as they contribute to its general value. As you can see, wine is not just a drink meant to be enjoyed with a delicious steak; it’s an excellent investment opportunity that can bring numerous benefits if you’re patient enough.