How To Invest In Wine

Are you a wine lover that wants to start making money from wine? Well, you’re in the right place.

Investing in wine can be difficult and has its intricacies - you need to develop a firm knowledge of the industry before you spend any money.

However, with the right knowledge and tools, anybody can invest in wine.

With wine investment funds, wine stock exchanges, and professional storage solutions, it’s entirely possible to invest in wine successfully.

Keep reading for information on wine investments, including which wine is investable, the benefits of investing in wine, and how to invest in wine.

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Wait, You Can Invest In Wine?

Just like you can invest in a quality whiskey, you can invest in wine. As wine ages, it develops nuanced flavours and textures and increases in quality.

The wine ageing process increases the value of the wine, making it perfect for investing.

The idea itself is rather simple - you purchase bottles of wine, store them, and sell them for much higher prices when they have matured.

However, there are nuances involved when investing in wine, and you’ll need an understanding of the industry before you invest so your investments will pay off.

Depending on the type of wine investment you opt for, you may not even be in actual possession of the bottles, as it could be taken care of by a third party (aka stored in a specialist facility).

However, if you don’t have a true passion for wine and aren’t committed to storing the wine in the best possible conditions, you could always invest in blue-chip wine stocks and funds - it’s a big market and there’s potentially a lot of money to be made.

You could also have a wine investment company take care of the hard work for you - they’ll purchase the wine on your behalf and store it for ageing, so you won’t have to worry about dealing with the process yourself.

 

Why Should I Invest In Wine?

Investing in wine can not only result in you earning a lot of money but can also diversify your portfolio.

If you’re a lover of wine, investing in wine can further your knowledge of wine as well as enable you to earn money from your passion - which is something many people wish they can do.

Fine wine is also known for having a low correlation with the global stock market, making it a great investment opportunity.

In fact, the wine investment market has outperformed many global equities as well as ETFs (exchange-traded funds).

It’s a much more stable market than silver, gold and even real estate, and has delivered 13.6% annualised returns in the past 15 years.

Therefore, it’s a great way to manage portfolio risk and counter any volatility.

 

Which Wine Should I Invest In?

Before you commit to any investments, it’s important that you know exactly what to invest in - what is worth investing in, and what will earn a profit.

Investment-grade wine is typically fine wine that will likely increase in value after 5 years or so.

When looking for wines to invest in, be sure to check whether the wine will get better with age. Some wines may not taste better with age, and therefore won’t be suitable for investing in.

However, wines that have the perfect mix of flavour, alcohol, acidity, and tannins will increase in value over time and are therefore a perfect investment opportunity.

It will also be beneficial to look for limited edition or rare wine.

Although these are more expensive, you’re likely to accumulate a much larger profit from limited edition investment-grade wine than wine anybody can purchase from the local supermarket.

Be sure to look for wines that are still in the barrel - this will give you dibs on a new vintage wine.

Although it may be riskier, your margins could easily increase if the wine increases in value with age after bottling and storage.

Critics tend to know what they’re talking about - so listen to what they have to say about certain wines. When critics call a wine classic or high-quality, chances are, it’s investment-worthy.

If the wine can be aged for over 25 years or even reaches peak maturity at 10 years old, it’s sure to be a quality investment.

Likewise, if the price of the same wine has increased over a ten year period, then it’s most likely going to be a good investment.

 

How Do I Invest In Wine?

If you’ve never invested in wine before, you may be wondering exactly how you do so.

Well, don’t worry - we’ve got some tips for you to give you a better chance of a great return.

 

Start Saving

Purchasing wines to invest in can be expensive. You know the saying ‘you need money to make money’? Well, that quote is pretty accurate in terms of wine investments.

You can’t just buy a bottle of wine from the shop and expect to earn thousands when it ages - the process is slightly more nuanced and involves a bit more money than £15.

First of all, consider how much you’re willing to spend on a quality wine.

The price of fine wine can vary drastically, so if you save enough, you’re sure to find a great option.

Treat your wine collection like a stamp collection - pick up the wines that seem to appeal to you the most and continue with that approach.

However, if you don’t have much knowledge of the wine industry, then this may not be the best approach.

Either way, you’re going to need a lump sum of money to get started, even if you only start with a couple of bottles.

 

Be Patient

Patience is key when it comes to investing in wine - first of all, you have to wait for the perfect time to buy.

This involves research of vintage wine and producers, as well as picking up when a wine is expected to increase in value.

You also have to be patient when the wine is ageing - you may be waiting for more than ten years before you start to see a return on your investment.

 

Store Your Wine Correctly

In order for a wine to mature in the best way, you need to store it in optimal storage conditions. Whether you opt for a wine cooler, a wine cellar, or have a third party company store the wine for you, it’s important that wine is stored in a cool, dry environment away from sunlight.

If you’re looking for large-capacity cabinets for investments, you’ll be glad to know that we stock a plethora of high-quality products, designed and manufactured by one of the leading wine-cooling brands, Climadiff. Climadiff has been in the industry for some time since the early 1990s to be exact. 

Trusted by many customers, Climadiff produces some of the most efficient, hard-wearing and reliable wine cabinets. A favourite for wine connoisseurs, you can rest assured that your wine will remain in the best condition possible when stored in a Climadiff wine cabinet.

To find out more about Climadiff, don’t hesitate to reach out to a member of our team today.