Wine Investment

Wine investment is becoming increasingly popular as wine drinking has become more popular throughout many countries, including the United States. These new wine drinkers often turn to wine investment as a means to diversify their portfolio in a unique and exciting fashion. There are many important things to muse over when considering wine investment for you and your family.

What is Wine Investment?

Making a wine investment is in many aspects the same as investing in the stock market or any other area. There are potential risks and benefits, and proper strategy and education are required. Things sometimes turn out worse than you expect and it is easy to be fooled or scammed in this expanding industry.

Before becoming a wine investor, you must know what investment wines are. Not all wines are investment wines, in fact only an extremely small percentage of labels are wine varieties can actually be considered for wine investing. An investment wine has these characteristics:

o Highly recognizable brand name and label, typically with expensive bottles and vintages. This increases demand and ensures quality, consistency, value and demand.

o Extremely highly rated by renowned critics, experts and magazines. What good would a wine investment be if it was in a wine that nobody wanted? The higher the rating, the more valuable and sought after your investment wines will be.

o Extended and improving drinking windows are important; meaning, will people be able to drink the wines for years to come, and will the wines actually improve with age? Wines with a short shelf life have little chance to provide a strong return on investment over time.

Here are some tips, reminders and helpful guidelines for your wine investment future:

Of course, you should make sure to do your research. As with any other form of investment, wine investment can be tricky. It is not as easy (or in most cases, as lucrative) as certain media stories may make it appear. It requires careful strategic moves and in general also requires the ability to wait for the long haul in terms of seeing significant gains.

A new wine investor should also make sure to seek out the proper sources. There are many startup companies that are either scams or have the potential to fold and go bankrupt, thereby eliminating your wine investment. There are however, well recognized, quality wine brokerages that can ensure that what you are getting is not only the real deal but will be protected.

Speaking of protection, you must protect your investment wines. As mentioned above, the first step is to find reputable sources of which you can obtain the wines from, thereby guaranteeing the wine is legit and the wine brokerage will not be folding. After that, you must store your wines in ideal conditions in terms of temperature, humidity/moisture and sunlight. Additionally, your wine investment should be insured against destruction or theft.