Fine Wine Investment
Put your money in a nice, safe building society, and you’ll be lucky to get more than a 6% or 7% return before tax. But if you’re willing to take bigger risks, you could see your investment appreciate by 1,600% – by investing in fine wines!
Over the last five years, the value of certain wines has risen faster than oil…faster than the FTSE 100 share index.. .and faster even than gold itself!
Keep on reading to find out more about wine investment opportunities .
Let Your Cellar Get Dusty – and Valuable!
If you’d invested £300 in a case of 1982 Chateau Mouton Rothschild when it first went on sale in 1983, you could sell it today for almost £4,800 at auction – a mouth-watering 1,600% return on your money! When musician Andrew Lloyd Webber auctioned off part of his wine collection in 1999 it raised over £3 5 million – after allowing for inflation, this was around twenty times its original cost!
You need to do your own research to find those wines with the best investment potential. There are lots of specialist wine books. The Which? Wine Guide’, published annually, is the best place to start if you want a good basic introduction to wine. And be shrewd when following advice published in newspapers. It’s often excellent, but so many people act on it, that the prices of featured wines tend to rise sharply at first, before falling only a few weeks later.
Uncover Secret Sources of Supply
You’re not going to find good wine investment wines at your local supermarket or off license. And be wary of advertisements openly promoting wine for investment. As many millennium Champagne speculators found out to their cost, these offers are rarely as good as they sound.
Instead, look for a small, specialist wine merchant in your area – see your local Yellow Pages’ for a selection. Tell them you’re looking to buy for investment and give them a budget. They’ll normally be glad to make recommendations and buy whatever wine you want for you.
#1 Buy Quality Rather than Quantity
One case (twelve bottles) of the best wine will appreciate in value much faster than ten cases of a mediocre product. You can pay anything from £10041,000 for a case of, for example, a good 1999 Bordeaux with investment potential.
#2 Taste Rarely Matters!
Age is largely irrelevant too. There are some incredibly expensive 2-3 year old wines, while some 20-30 year olds have little value. The value of a wine depends on three main factors:
• Heritage – how well other wines from the same chateaux or vineyard have performed
• Vintage (if any) – every wine producing area has a naming authority (for Spanish Rioja, for example, this is the Consejo Regulador). The authority assesses whether the wine is up to standard, and if so, it declares a vintage.
• Rarity – how much of the wine exists.
You can get all this information from good wine guides, or from your local wine merchant.
#3 How to Sell for the Biggest Profit
Always keep an eye on the value of your wine investment, so you can choose the very best time to sell. A key factor here is demand, of course. If your wine suddenly becomes fashionable or is acclaimed by the newspaper experts, then its value can skyrocket in weeks. You could then decide to take a quick profit rather than keeping your wine for long term gains.
Most wine merchants will monitor your portfolio of investment wine for you if you ask. And they’ll advise you when the best time comes to sell. This service is usually free. All they will ask is that you buy and sell the wine through them.
#4 No License Needed
You don’t need a license to buy or sell wine as an investment. However, this is on condition that you only sell your wine through a wine merchant or auctioneer – not on the open market. Even better, occasional private dealing in wine is free of Income Tax and Capital Gains Tax! Besides, when you do wish to sell your investment wines, the easiest way is through a wine merchant or auction house. They charge a 10% commission for this.
#5 Top Insider Tips for 2001
The Guild’s expert contact at a major wine merchants has revealed that…
• Historically, reds tend to appreciate faster than whites.
• French wines tend to rise in value more quickly. Their reputation has been established for longer.
• Bordeaux wines from the famous Chateaux such as Chateaux Margaux and Chateau Mouton Rothschild have the best track record for producing big returns.
• Italian, Australian and Californian wines also have great potential.
• Vintage ports are almost always as good as money in the bank.
And worth buying right now if the price is right:
• 1988 Bordeaux
• 1989 Bordeaux and Burgundy
• 1999 Bordeaux
• 1998 Clarendon Hills Grenache and Shiraz Red.
• 1983 and 1985 vintage ports.
Be warned! Investing in wine is a high risk business. You can’t guarantee that any one wine will return you a profit of several thousands of pounds. But of course, you have compensation – if it doesn’t make you rich, you can always have lots of fun drinking it!
• 1982 Chateau Mouton Rothschild
Opening price £300/case. Today’s approximate value £4,800/case.
• 1982 Chateau Margaux.
Opening price £300/case. Today’s approximate value £3,500/case.
• 1995 Chateau Cheval Blanc.
Opening price £550/case. Today’s approximate value £l,850/case.
• 1900 Chateau Margaux.
Opening price £5/case (estimate). Today’s approximate value £72,000/case (estimate). Perhaps the world’s most valuable wine and very rare!
Fine wine investment guide brought to you by MoneyHitman