With markets crashing and rallying what seems like every few seconds, investors are looking to more stable opportunities to diversify and strengthen their portfolio. Saying that we want to ask could wine be a lucrative investment?
At the Ideal Wine Company we recognise that wine, especially luxury wine, means different things to different people. For some its stress relief, for others it’s a collector’s passion, for yet others it’s almost a lifestyle.
However we’ve also recognised that wine can be an opportunity for many who are looking for a stable long term investment. In fact increasingly wine aficionados across the world are discovering that wine ages well in the financial market.
It would be easy to see why. The one rule that holds steady across wines of every genre concerns age. The older a wine is, the longer it has had to age, the better it tastes. This is why wines produced an age ago often fetch higher prices than those bottled last year.
It also proves they’ve stood the test of time. Wines come and go; this is such a large, such a diverse industry that it has to have something truly unique to appreciate in value as it ages. Those wines that do increase in value often do so because they have been proved superior over the course of their long life.
So, wine that is older generally fetches higher prices, does this translate into investment? It could, depending on how you play it.
Any collector could build up their basement with bottles of top quality wine and allow them to gather dust. Then they can watch when they become collector’s items and sell them on, making a steady profit. This is actually quite a common practice in the wine world; showing that it works as a small scale investment.
However, truly outstanding wines attract large investors. Most people who engage in wine investment are bit players, like those outlined above. However it is becoming increasingly possible to make a large profit in the wine trade.
Take the Bordeaux 1982 vintage for example. Experts agree that this was the wine that changed everything. On the back of the quality alone, this wine saw prices shoot up on the market as demand for the Bordeaux skyrocketed.
Therefore it became rarer and these days a case can go for handsome number. Take a case of 1982 Chateau Latour for example. In 1982 this would have sold for $400. Today it would sell for around $33,000; a handsome profit for any investor.
So wine can be an investment; however it has to be of truly stellar quality. Start building up your wine ‘investment portfolio’ today from the Ideal Wine Company list of luxury wines.