Winemaking and consumption are some of the things that were never buried in time. Until this day, it’s loved and enjoyed by so many. A lot of striving wineries are experimenting with different methods and flavors to cater to the ever-changing modernization.

It’s no surprise that many business folks and even startups are looking into investing their own. But before doing so, here are some important facts that you need to know about investing in wine.

Let’s define wine investment.

Wine is like precious metals such as gold. Its value goes up and appreciates over time as it ages. This is the very reason why people would like to invest in wine. It’s like keeping yourself a stash of gold bars in your cellar.

If you’re a wine collector, you can buy wines and stock them up to sell in the future at a higher price. You can also opt to stock them in wineries where there’s a specialized facility to keep the wines in shape in the coming years. This way, it becomes more profitable to sell.

Wine investment cellar
If you’re a serious wine collector, you should investigate secure and professional wine storage facilities like the one shown above. They ensure that your wine is kept securely under lock and key, and at the correct require humidities and light levels for a long term investment.

 

If collecting and storing wine is none of your interest, you can opt for another route, which is to invest in blue-chip wine stocks. Your money grows without having trouble to collect and store the wines of your choice.

When it comes to investing in wine, you should make sure you’re already familiar with the world of wine before you get started. If you’d like some introductory material, then why not check out 10 Popular White Wine Grapes Varieties, as we introduce you to the world of white wines.

Why should you invest in wines?

As other people would say, “You can always find a brighter opportunity from your hobbies.” If you have the capability to turn your interest in wine drinking into a profitable income, then why not? Instead of keeping your own stash in the cellar, you have the opportunity to sell your well-kept and limited wine stash to avid buyers for a good price.

This serves as an alternative profit option for individuals, making their collection a business. Nowadays, the fine wine market has notably competed with other global exchange-traded funds. For the past decade, it has increased its ROI by over 13.6%. This is pretty much like trading with precious metals such as gold.

How to know if the wine is worth your money?

Here are some key tips that you should know before investing in wines. This will greatly help you to come up with a better profit and bigger market exposure in the industry.

  1. Investing in Fine Wine can increase its value after five years, which is considered as an Investment-Grade Wine.
  2. Know that every wine you’re about to invest in, appreciates more when it ages. Every bottle should have a well-balance of acidity, flavor, tannins, and alcohol, making its quality set apart from the rest.
  3. Check out the reviews from critics from the wines you’re collecting. If it has an average rating of above 95%, then your money is in good hands.
  4. Look for wines that can last for more than a decade. You can get fine wines that can last for up to 25 years with higher price value as it matures.
  5. Check the pricing of each wine. Make sure that there’s a movement of appreciation after a decade it was produced.
  6. Opt for limited edition wines. These kinds are pretty scarce and will have a shortage in number, making it hard to find decades after. The more scarce the wine, the higher the value it peaks.
Wine investment barrels
One difficult aspect of investing in wine as a wine lover is to be prepared to decouple your personal tastes from your investment portfolio. The wines you like the best may not make the best investments, but it’s always good to play to your knowledge where possible regardless!

Tips on collecting and storing your wine bottles

  • Talk to individuals that have a proven experience in this field. Find a set of best practices that you can follow and tips to help you get started in this next step.
  • Research and understand the data you’re looking at. Wines have their trends, and you can’t miss any movement to understand if they fit your financial step or not. Enough research will prepare you for the pros and cons.
  • Know your budget. Identify how much you can truly invest. Experts recommend having at least $10,000 as a starting investment fund when you get into this business. It gives you enough choices on which brands you’d like to buy.
  • Identify where you are storing your wine bottles. You must have a cellar that supports a good temperature and overall condition for storing wines. If not, you can always opt for a storage facility in a reputed company for a good fee.
  • Know how to market and sell your wines. You can auction, sell via wine stock exchange, or connect with a private collector. As long as you know your route, your ROI will be doubled.

If Wine Investment is for you, make sure to talk with an expert to guide you with every step. Our guide from this article is just a glimpse of what the overall picture is all about when you join the wine industry.

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