There are some principles that should be followed if
one is to make a successful investment.
1. Any investment should be treated as a long term and
a minimum of five to ten years is usually recommended.
2. Only buy the finest wines in the finest vintages,
remembering that when they appear on the market they
must be of a recognised quality and source.
3. While buying from wine merchants, who are certain
as to where the wine has been stored and, more importantly,
where the wine will be stored in the future.
4. Like many investments, do not put all your eggs into
one basket. Wine investment should only be a proportion
of your investment portfolio.
5. Enjoy wine! This sounds obvious but investments can
go wrong and at the very least one will have the pleasure
of drinking some of the finest wines in the world.
The Benefits of Investing in Wine
There are some amazing benefits that can derive out
of investing in wine.
Capital appreciation. Whilst
it is almost impossible to establish a percentage
growth on a wine portfolio, there are many examples
of exceptional performances from the finest wines
over the last twenty years.
The 'Drink Free' opportunity. For example
an investment of ¢G20,000.00 could easily be split
half into pure investment wines and the other half
into wines for drinking in the future. By selling
the investment wines at some future date, past experience
has shown that the profit on this sale has covered
the purchase price of the drinking wines.
En Primeur. "Primeur"
system is a way of buying fine and rare wines while
they are still in barrels. Over time the value of
the wines will appreciate and it is therefore the
best way to secure some of the finest Bordeaux at
the best prices, for investment and enjoyment.
Besides Bordeaux, Burgundy, Italian and Australian
wine is also alternatives for investment.