Over the past decade or so, more and more of the world’s population has tapped into the fine wine game, spending hours of time trawling the internet (amongst other avenues) for some of the best vintages that can be obtained via financial means.
The effect of this has piqued the interest of wine-lovers and aficionados alike, each of whom have been searching in their droves to locate the best fine-wine investments they can; indeed, numerous A-list celebs now count themselves as purveyors and owners of some of the finest luxury wine products in existence.
But, for absolute beginners looking to make an investment – whether to widen their investment profile, or bolster their personal financial stability or growth – there are a few things that are useful to remember.
Shop Around for the Best
It should go without saying that, when investing in fine wines, the first thing that should be considered is how to identify the most established and reliable merchants – seek advice from those more ‘in-the-know’ than yourself and take some time to look into the variety of merchants out there to see which ones are highly-rated amongst frequent investors.
Condition
When investing in wine, Underground Cellar state that it’s important to focus on the condition of the casket or case that it comes in. Ideally, cases should be formed of the original wood, be unopened, and contain just one type of wine inside – unsealed and mixed vintages are both signals of some dodgy dealing going on, so remaining vigilant is essential.
Variety is the Spice
Although it’s tempting to only buy from the biggest names in the wine game, there can be some serious profit losses accrued from chasing this route. The best profit margins may actually derive from lesser-known wineries, so shopping around to discover the hidden gems may actually unlock a larger profit potential!
History Check
Having a firm, detailed knowledge and understanding of the provenance and storage history of the wine you purchase is crucial, as it helps you to identify the current value and profit potential of your investments. Without this knowledge, many investors could be devaluing their entire collection unwittingly.
The final advice for investors to bear in mind is to ensure that the wine they invest in is not only fully insured (should disaster strike), but that it’s stored in their name – this is beneficial for insurance purposes. Overall, however, remember to enjoy the entire process!
