A bi-product of the current economy, wine prices have dropped to levels that are finally more palatable for investors and wine enthusiasts alike. We frequently sell investment-grade wines, and we have witnessed the prices drop approximately 25%. For wine buyers with cash on hand, the return on investment (ROI) is significantly better than it was this time last year.
When you are ready to sell your wine there are several options available to you. You should consider these options before you begin your investment, so that you can estimate the transaction fees and other costs that will impact your overall financial gain.
Wine investment is a particularly attractive area in which to diversify your investment portfolio, as the law of supply and demand governs the wine market in a uniquely advantageous manner. Not only is wine produced with a finite supply for each vintage, but the available quantity shrinks with consumption and breakage. And demand for fine wine is growing, not just in the US, but globally. Wine enthusiasts and individuals with high disposable incomes around the globe are still discovering what Europe has known for centuries - that fine wine is worth its high price tag.
Investing in wine is by no means a new phenomenon, although most US consumers are unaware of modern wine investing opportunities. This brief history should provide context and confidence to potential US investors to look to wine investing as a viable, lucrative and mainstream investment option.
Investing In Liquid Assets by David Sokolin and Alexandra Bruce
Wine Investment for Portfolio Diversification by M. Kumar
Ten Tips For Investing In Fine Wine by Karen Orlandi
History of Investing in Wine by Karen Orlandi
Wine Investment: Financial Times Special Report, June 20, 2009
Is Wine A Smart Investment? by Food & Wine Magazine, October 2008
There are several books and thousands of articles dedicated to the subject of wine investing, but if I were to boil down the "Cliff's Notes" version of the top ten things you should consider when investing in wine it would be the following: