Even in times of economic turmoil, luxury wines can return faster than stocks and cryptocurrencies because of the law of supply and demand.
What do you spend the most on a bottle of wine? Probably less than the £ 424,000 that Romane-Conti went to Sotheby’s in New York last month and broke a record for bottle sales. With relatively steady growth and high return potential, investing in wine seems like an easy win, but how do you get a lot for your bottle? UKV International is here to answer all your questions and tell you when to open the wallet and when to plug it in.
Do I have to be a wine connoisseur to invest in it?
You don’t have to be able to smell the 1934 Chateau Lafitte in ten steps, but it helps a lot if you are familiar with the main region, its wines and producers. It’s also a good idea to keep track of market numbers, movements and trends when you want to part with your hard-earned money without collateral. So make sure to type them in and you’ll better understand which wines are likely bigger than others. As Ella Lister, CEO and founder of Wine Lister says, “If you want your hands to get dirty, you need to have at least some necessary information. You can supplement it with online tools like Wine Lister to search for specific wines, price history, liquidity, brand strength, etc. and their relative value. ”
So, once I’m ready, what’s next?
First, make a choice how much you want to invest (it shouldn’t be more than 10 percent of your assets) and how much you want to contribute. There is a selection of wine clubs that runs by venture, collection managers, or even full-fledged finances. Or you could open a depository account and buy wine in bonds, maybe en primeur (when you first start and before the wine is bottled) – that’s what you need. one or three helpful wine merchants, as well as an independent source of information to make sure you’re buying the best wine at the right price. “According to Simon Larkin, wine master and managing director of Atlas Fine Wines, being a trusted source for getting into the field” It’s important to find someone who you trust them. They need to have a proven trading history. To be able to show their experience and explain exactly how they work.
Which wines and regions are worth investing in?
While the premium wine category has never been so diverse in origin and style, if you are known for money, you should still limit yourself to the most traditional wine regions. Lister continues: “Bordeaux is the mainstay of most investment portfolios due to its liquidity, but prices in Burgundy have increased much faster in recent years. Tuscany and Piedmont are Italian parallels between Bordeaux and Burgundy and deserve a bit of space in the wine portfolio.
As for the New World, there still isn’t much wine to invest in outside of California. Larkin has similar advice: “Investing in wine is limited to regions where wine is relatively long-lived and where liquidity is most readily available. Therefore, there is a stronger European orientation. Regions such as Bordeaux, Burgundy, Italy, and Champagne. The value of some other wines may be good on paper, but in fact their market value is much lower. basically, iconic wines from other parts of Europe or beyond for instance Australia and New Zealand may require high selling prices and attract attention due to limited quantities or superstars, but are currently not a reliable source of long-term financial growth.