Wine Investments Explained

September 23, 2015 Investments No Comments

Fine wine is a sophisticated and complex product specifically made to high standards by wine producers internationally. There are so many different varieties of wine and each has its own unique flavour which becomes better and more multi-faceted with age. The global demand for the finest wines has increased over the last few years and wine investment has been known to perform well for passionate and savvy investors.

One of the biggest benefits of wine investing is that it is a tangible asset and it’s quality improves with age. Wine investing is non-correlated to common financial investments and unlike financial investments, wine will invariably improve in quality with age. That is the nature of wine.

Investing in wine is often guided by two main methods or strategies. Purchasing and reselling individual bottles or cases of particular wines to later resell for a profit or some people buy young wines which they keep and allow to age so that they will improve over time.  It is usually recommended that an inexperienced buyer work with a broker, merchant, or a consultant, to minimise risk due to lack of knowledge.

In order to maximise potential returns and minimise risk, it is recommended that you seek the advice of an investment management professional when investing in wine, especially if you do not personally have an extensive amount of expertise on the subject. This is essential to making a strong investment as wine quality can change over time, some investment grade wines can be faked, past performance can’t guarantee the future of wines and investing in wine requires insurance.

Lack of knowledge when making this type of investment can make you vulnerable to risk. You’ll want to purchase the best you can afford and store it in a bonded warehouse with insurance. There are a lot of complex aspects to consider and there is a formula to consider when tracking the investment returns on wine which is why you should consult experts such as those at Taylor Brunswick Group when it comes to investing in wine so that the decisions you make are smart decisions that build a strong portfolio.

Learning about the finer aspects of wine and becoming a connoisseur and investor is a lifelong journey with always something more to learn but with expert professional advice that will help you not only choose the best wine investments but help balance them with your other stocks, bonds and mutual funds, you’ll be ready to enjoy this unique and pleasurable type of investment.