Thursday, March 19, 2009

Fine Wine Investment Advice

There are two major reasons for fine wine investment:

* Firstly as an investment in future drinking - buying young wines at the initial release price which, when mature, would be considerably more expensive to buy.
* As a strictly financial investment - buying wines with the sole intention of reselling later for a profit.

For many people who keep a cellar, both factors will influence investment.

The global demand for fine wine, which is produced in very small quantities, has increased enormously over the last two decades. Wine can, and often has, outperformed the FTSE 100 and the Dow Jones, offering significant returns without the volatility of the stock market.
Wine Investment Essentials

* Focus on the top wines from the best vintages. Only a fraction of wines produced worldwide will increase with value if kept.
* Store the wine correctly and, preferably, in professional temperature-controlled cellars.
* If purchasing in Europe, buy and store wines 'under bond' so sales taxes do not become payable.

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