Building your own wine collection is a huge investment, and you need to be sure about your decision as it would be a significant commitment but also quite a rewarding one. Of course, you also need to consider if the investment you’re making is both enjoyable and profitable. While doing your research, you should first ask yourself these questions before you start investing in fine wine.
1. What Will I Buy?
This is the first question that will come to your mind, and it will require the most amount of research since it has the greatest impact on how much you will spend building your collection. However, it is imperative that you are able to answer this question before venturing further into the world of wine.
The first thing that you should look into is determining the type of wine you will buy. This is because wine investment aspects vary from one category to another, which would greatly impact your buying decision.
If you are planning to invest in Bordeaux, for example, your most important concern would be which vintage to invest in and when. Bordeaux is a sucker for vintage-based wines, and you will have to consider which vintage you intend to buy. Generally, from 1961 to 1983 and from 2005 to 2009, the wines have been great, with 2018,2019 and 2020 most recently known as exceptional.
2. What Is My Goal for Investing in Wine?
Most of the time, people invest in fine wine to get rich. Some want to make money while others want to impress their friends with a huge collection as it is a status symbol. Some people buy wine as an investment, which can be profitable in the long run. In any case, you should find out why you want to buy wine before investing in it.
If you want to make a profit, you should get tips from experts and invest in wines that are highly rated in wine auctions while keeping the price low. If you just want to have a huge collection, you can go for wines that are highly rated while still having a modest price.
3. What Are My Resources?
You wouldn’t want to put in money that you can’t spare. If you have more cash, you can invest in wines that are expensive. However, if you don’t have as much as you thought, you can look for wines that are cheaper. Remember that expensive wines do not always translate to better quality.
When you know your resources, you can be more specific and narrow your options. For example, if you have a large budget, you can invest in rare wines that are expensive and demand a high price.
4. What Is the Wine Market Like?
While you’re at it, you should also try finding out if the wine market is currently good or bad. This would be a good starting point to find out if you should invest in wine or not.
If the market is considered to be good, it means that the wine industry is booming, and it would be a good time for you to create your collection.
5. What Is My Target for My Investment?
You need to know how much you are planning to make from your wine investment. If you want to make a lot, you have to choose wines that are expensive. Those that have considerable potential for high profit are European wines from a good vintage and from a top vineyard.
You should also consider wine investments in the US which are rare and valuable. If you want to make a modest profit, you can look up wines that are cheaper and still have a good potential for profit.
6. Where Will I Keep My Collection?
This may not be a big deal for some people, but it is a big deal for some. You will have to consider if you have room for a vast collection as well as whether you can maintain it.
If you can’t keep your collection, you need to find another place to keep it. You can keep it in your wine storage, or you can hire a specialised company like Cru Wine that would take care of your collection. If you already have a collection, you may also consider adding to it as you will be confident that you can take good care of it.
7. What Is My Plan?
When you know your goals and resources, the next thing is to find out how you are going to execute your investment plan. It is important that you have a plan or a strategy on how you will run your collection.
For example, if your goal is to make a profit, you should have a game plan on how you will sell the wines that you acquire. It is important that you have your plan ready because it would make the process a lot easier and will give you a more confident approach.
8. Is the Timing Right?
It is important that you also determine the best time to invest in wine. This is because the wine market is volatile, and you need to be able to predict how it will move. You should also find out if the market is in a good or bad state to avoid the risk of investing at the wrong time.
9. Do I Need a Specialist?
If you plan to invest in fine wine, it is always a good idea to hire a specialist to take care of everything for you.
However, it’s also important to note that not every wine investment specialist is good for your needs. It would be best if you’re able to find someone who has in-depth knowledge about wine and is able to give you excellent advice. But if you cannot find anyone like this, you can look up to an expert specialising in wine investment.
In fact, it would be best if you could find an expert to not just handle your wine investments but also to handle the entire wine collection. Expert wine collectors are not easy to find, but they are worth the effort.
10. Will I Enjoy Collecting Wines?
Last but not least, you should also find out if you’ll enjoy the process of collecting fine wines. It’s important that you are able to see yourself enjoying the whole process. This is because it would be very hard to see your investment as an obligation, and it would only create stress. You need to be happy with the wine that you buy and the fact that you own it. You should be able to see the joy of having an investment that is always by your side in this process.
Wine Collecting: The Investment of a Lifetime
For people who can’t tell the difference between a Pinot Noir and a Merlot, investing in fine wine may sound fun, but it can actually be quite a stressful task. However, if you have the right information, you can make a more informed decision about buying wine for investment.
Investing in fine wine is one of the most rewarding investments you can have. But it pays to work with someone who shares the same level of passion for wine as you do. This is where Cru Wine excels. Our team of wine specialists are here to enrich the fine wine investing, collecting, curating, and drinking experience of every wine lover out there. Whether you want our expert advice or someone to manage your cellar, we are the ones you can rely on. Sign up to our mailing list today to receive exclusive access to the world’s greatest fine wines and spirits.