Buying wine as an investment is the new trend among investors. The financial crisis and market fluctuations have forced investors to search for new ways to invest their money and make the best out of it. Traditional ways of investments are being replaced with alternative ways because in the past few years people who counted on shares etc., saw their portfolios losing value and never recovering as companies filed for bankruptcies.
In this article we will explain to you how you can benefit from investing in wine, even if it sounds very unusual. An experienced investor never has a problem to check new ways of investing while trying to make a profit and neither should a beginner one if he studies and he acquires the right knowledge.
Most of wine shareholders are typically unfamiliar with wine. They invest because they hear that wine is a safe alternative investment producing good returns. But later, they are happy to learn about the wines on their journey. Investing in wine is for most people a two-option case. The first option is related to buying and reselling individual bottles or wine cases. The second option is related to buying shares in a wine investment fund – like a mutual fund, except for a portfolio of wine bottles. The second investing option is more familiar to seasoned investors that have portfolios consisted of advanced financial products. Of course, the size of a wine portfolio has to do with how much risk are you willing to take, how much of your budget you are willing to dedicate to purchases and if you would like a long, medium or short-term investment.
Wine investments consistently outperform traditional investments such as stocks / shares, real estate and higher-return commodities in addition to relatively low risks. Before you can make a wine investment, you need to have a certain of understanding about what it is you’re investing in. That begins with knowing how a wine’s vintage influences its appeal as a collector’s item for investors. As a general rule, rarer vintage wines are more preferable than more common vintages because they’re more sought after.
This means that your portfolio is well-rounded, including wines from various vintages, from different regions. With the introduction of new wines into your holdings, older wines may approach peak maturity. When you plan to sell your wine investments to a wine connoisseur at the end of the day, it’s important to pay attention to the quality and range of wines you’ve invested in so you can make the selling time for maximum profit.
Investing in wine and especially in vintage wine hides many opportunities for people who want to include something new in the portfolio, keeping risk at low levels. Alternative assets and tangible products such as wine and whisky can have high rates of return and they worth giving them a chance to make a good profit out of them. Why don’t you try and see how you can increase your wealth?