In this article, we outline the key things that you need to consider when investing in fine wine. Fine wine investment experts like the team at WineCap can help you make informed decisions relating to the following factors.
Is investing in fine wine a good idea?
Investing in fine wine is a proven way to strengthen and diversify your portfolio. Fine wine is a stable, low-risk investment thanks to its tangibility and low volatility. As an alternative asset, fine wine has shown very little correlation to mainstream markets. When traditional investments like bonds and equities fall, fine wine tends to hold steady. Moreover, fine wine has been one of the best-performing assets over the last 30 years, delivering consistent returns even in times of uncertainty.
How much should you invest in wine?
Fine wines are a luxury commodity, which means they can sometimes command high prices. Most people tend to start off in the vicinity of £5,000-£10,000 to make their investments worthwhile. However, there are a range of options depending on the region and the producer, how much of the wine is made and the wines’ age. Setting your budget before you start will help you narrow your focus and ensure you have exposure to the wines that suit your investment goals. This figure may change as time goes on, but it’s good to have a starting point.
Which wines should you invest in?
Once you have set your budget and determined your investment goals, you need to decide which wines you want. Factors such as region, producer, grape variety and critical acclaim will affect their final value.
A wine investment expert will help you find the appropriate wines for your investment portfolio. WineCap has formed long-lasting relationships over the past decade with négociants, wholesalers and private collectors. This means that we have access to some of the world’s most prized wines. What’s more, our unique proprietary technology analyses over 400,000 wine prices a day to identify the right, undervalued wines to buy and sell across the global market at the right time and price.
How will you store your wines?
Investment-grade wine should be stored correctly to help protect its value. For long-term storage, this means holding the wine in a cool, dark place with minimal disturbance. Bonded storage (a secure location approved by the HMRC that stores items that haven’t paid VAT or duty tax) will give you the peace of mind that your wine is being kept in the right conditions. World-class care ensures that when you come to sell, your wine’s provenance will quickly secure maximum prices.
Ready to embark on your wine investment journey? Schedule your free consultation with one of WineCap’s investment experts to find out the next steps.