This is the second post in an exciting new series we’re doing here at Earn More and Save. This week, we’re going to take a look at wine as an investment. Everyone (drinkers and non-drinkers alike) has the vague notion that wine increases in value as it ages. This is the basic principle of investing in wine, but there’s far more to it if you truly want to be successful in your venture. Educating yourself about the ins and outs of the investment vehicle will put you ahead of the pack, and learning as much as you can upfront will hopefully yield you some tasty returns decades down the road.
Cautions and Considerations
Before you begin, embark on a lengthy education about wine – this knowledge will be your greatest asset when you begin investing. If you’re totally unfamiliar with wines, enroll in a wine education course that will introduce you to tastes, grape varietals, regions, names, aging, and other key knowledge areas of note.
You should also learn the basics of wine storage, such as proper temperature of a wine cellar, correct rotation, the effects of sunlight, and other maintenance “musts” that will enable you to keep your stash in peak condition. If you snap up a collection of bottles on a whim, but you neglect to learn how to properly care for your investment, then you may find yourself with spoiled wine and empty pockets.
The other key component to wine investing success, of course, is picking the right brands and vintages for your collection. Figuring out which wines will appreciate in value the most substantially is a bit of a gamble, and that’s precisely the reason education is so vital. It will help you pinpoint successful regions, winemakers, and more – important info that will help you make the best decisions when you buy.
Alternative Ways to Invest in Wine
If the idea of investing in wine appeals you, but you fear your lack of knowledge will cost you money, never fear. There are alternative routes you can take to enter the wine investor’s arena. For example, companies such as the Wine Asset Managers, LLP specialize in the management of investor funds in nothing but the fine wine market.
Companies such as WAM are investment groups that operate entirely independent of the stock market – they’re investment collaborations focused on the joint investment in and ownership of fine wines, plain and simple. The company claims steady double-digit long-term growth thanks to the Metric eis tax relief. Remember that investing in wine this way is more of a gamble since your investment won’t be sitting in a cellar under your own roof, so exercise caution and due diligence if you choose this route, and more now that there’s also virtual currencies, and the best crypto signals are coming a long way in the market making even more valuables than some stocks so you might want to give it a try first before investing in wine.
I’m personally into the idea of buying wines myself and holding them until they “peak”. It is quite a gamble, yes, but what investment isn’t? The best way to reduce your chances of striking out is to do your homework. And look on the bright side: if you pick a few duds, at least you can drink away your sorrows!