How to Invest into Fine and Rare Wines
Investing into fine and rare wines is an alternative investment method to the traditional financial holdings of stocks, bonds and real estate. While most wine is purchased for consumption, some wines are purchased with the intention to resell at a higher price in the future.
Just a Small Number of Fine and Rare Wines are Produced Every Year
There are only a limited number of wines produced each year for wines which are from a recognised classification. There are restrictions placed on the Chateau to the number of labels they are allowed to produce on each vintage. As the years go by, more of those bottles are consumed and the number of bottles in the market place becomes more scarce. At the same time, the wine matures.
As the wine matures and number of bottles available have decreased, the value of that said wine has significantly increased. This is when wine investors will look to sell at a profit.
Investing into wine can be done through purchasing shares in an investment wine fund. But it is more commonly accomplished through the purchasing and reselling of individual bottles or cases of fine and rare wines directly with a broker or wine merchant. If you are new to wine investment it is recommended that you work with a merchant or consultant to accomplish the most returns in your investment.
The Storage of Rare Wine Significantly Impacts the Value and Taste
Throughout its lifetime, fine and rare wines require careful handling in optimal conditions. How your fine wine is cared for will have a direct impact on its future value and the wines taste when matured. In order to ensure the optimal conditions of your wines are met, it is highly recommended that you keep your wine in a bonded facility which has a good reputation and does not charge you the earth for keeping wines with them. High storage fees will eat into your profits at the end of the day so try to find a balance between good service and reasonable charges. If you keep your wine in bond you will avoid paying VAT and Duty.
Here at Invest into Wine, we store our wine in London City bond chamber facilities in London. We have a client trust account where your wines are placed in your name as a customer reserve meaning they do not form part of our companies asset listing.
Just like investing into the stock market, prices of investment wine can go up as well as down so you may see fluctuation, especially in the first few years of the investment. Therefore you will need to monitor the market frequently and look out for great deals when prices are low to buy in. Timing is a crucial part of fine wine investment.
Start Your Wine Investment Portfolio with Invest into Wine
Investing into fine and rare wines is a fairly low risk, long-term investment. If you want to start building a wine portfolio to secure a self-financing future investment, Invest into Wines are here to help. We usually suggest having a minimum budget of £5000 in order to successfully kick-start your portfolio and buy you around 1-2 cases of investment wine.
You should look to build a fine wine portfolio of at least £50,000 over the course of 3-5 years at least as this will give you a diverse portfolio so you do not put all your eggs in one basket. For clients with portfolios over £1 million we offer reduced yearly management fees of only 0.25%.
Upon purchase of your first case of wine your account with Invest into Wines will be immediately activated and once your account is set up you will receive countless benefits. You will receive monthly recommendations on the fine wines to invest into, tips on the best time to sell your investment and up to the minute news on the fine wine market from around the globe.
Once ready to start your wine investment, you will be able to buy and sell wine on the Invest into Wine exchange.