Have you ever stopped to think about why more people are getting into fine wine investing? Just picture this. A rare 1874 bottle of Perrier-Jouët Champagne was expected to sell for £15,000 but was actually sold for £42,875. 11 Domaine de la Romanée-Conti, Romanée-Conti 1971 bottles which were estimated to sell for £180,000 fetched £269,500.
Considering these two instances that happened at an auction in London not long ago, where, in fact, £7.6million of sales were made, it’s not hard to see why investors are paying attention to rare fine wines now more than ever.
But you’re probably thinking that investing in fine wine is beyond the reach of normal people, but that’s not exactly the truth. Thanks to reliable online platforms and wine merchants, it has now become possible for people to invest in wine even with just a few hundred pounds.
That said, like with any other investment, you need to still approach this with caution. After all, this is an alternative investment that isn’t regulated nor given protection by financial authorities.
The good news is there is no set minimum investment but there are some wine asset management companies that set a particular threshold. You would also have to pay for storage. It’s advisable that you buy bigger value cases so as to reduce storage costs or to make the cost worth it.
If you are interested in buying wine as an investment, here are some tips on how you can do it for less:
Focus on Lesser-Known Wines First
Since you are in it just for the return of investment, you should start with cheaper wines that are of lesser-known labels, then move on to bigger and more expensive bottles later.
This makes it easier for you to sell the wines later on, should you ever decide to sell them, as the prices would have slightly increased by then.
Get the Right Storage Facility
Storing wine in the right facility will help you keep the bottles in tip-top condition.
If you want to invest in wine, you have to make sure that you have the right storage facility. Wine storage facilities are not exactly cheap, but they make good sense when it comes to preserving the good condition of your wine.
Invest for the Long Term
It is not a good idea to invest in wine if you are looking to get your money back immediately. Instead, you should choose the wine you are going to invest in wisely, and this would take some research.
You would have to do some research and ask the help of experts to find out which wines are bound to increase in value, and you have to be patient and wait for the right time before selling them.
Get Proper Guidance from Experts
Most likely, you are not well versed in fine wine investing, so it’s best that you seek the help of professional advice. You can find expert guidance from several wine associations or wine critics/experts online. They can give you an idea of which wines to buy and how much would be the ideal investment.
While there are certainly a lot of things that you need to keep in mind when investing in wine, the good news is that with careful research and good sense, you can make the most perfect investment for you.
To really know how much you can invest in fine wines, you need to compare the prices of different wine investment companies.
Let’s say that you want to invest in French wine.
French wine is going to be a great investment because of the quality of the wine and the region.
Let’s say that your budget is only £3000.
You can compare the prices of different wine investment companies and choose the one that gives you the biggest bang for your buck.
Hopefully, this has helped you understand how much you can invest in wine based on your budget.
What Returns Should You Expect?
This is where you need some guidance.
The best way to know if wine is a good investment is by looking at past performances.
From 1996 to 2013, the market value of fine wines has consistently increased in value.
Some of the most popular wine investment periods are:
1966 to 1970 (It increased by 550%)
1970 to 1977 (It increased by 400%)
1977 to 1987 (It increased by 350%)
1987 to 2000 (It increased by 300%)
2000 to 2006 (It increased by 200%)
In 2013, an investment of £10,000 would yield £40,000.
So, as you can see, wine has consistently proven to be a good investment. With this, you don’t have to worry about it.
So, is wine a good investment? The simple answer is “yes”.
Yes, wine is a good investment. But there are a few things you need to know. Your budget will dictate how much you can invest in wine.
If you want to get a higher return, you would have to spend more. If you want to consider older wines and bottles that are of higher value, you would have to spend more as well.
Why You Should Invest with Cru Wine
At Cru Wine, we believe in providing a tailored approach to wine investing that suits your specific needs and objectives. Our priority is to provide an exceptional investment experience for all our clients and to help you build a profitable portfolio that is diversified and designed to deliver excellent long-term returns.
If you are thinking of buying wine as an investment, look nowhere else because Cru Wine brings you everything you need to get started with your new venture. Get Cru Wine’s guide to fine wine investing today!