Wine Investment Guide: How to invest? Is it a good investment?

INVEST HERE: Why wine? Buying, storage, and sale of fine wine is simple, straightforward, and secure with Whisky Partners – CLICK HERE.

Wine investment has enjoyed a democratisation that has opened up opportunities for those who want to spend a modest sum or simply to explore the world of fine wine, without high risk.

But navigating the landscape can deter collectors as they encounter an overwhelming choice. Which are the ones to buy and drink? What vineyards will deliver a good return? How long should wine be kept before re-selling?

Unlike say, whisky, with its well known reputation for yielding profit as it ages, and with astonishing, news worthy auction figures, wine tends to attract less publicity.

While investors may trust their limited knowledge of the whisky market, they may be less confident about becoming an oenophile, explains Whisky Partners in this guide below.

A ‘GRAPE’ ASSET, OR SOUR GRAPES?

However, wine investments certainly should be considered as a good investment and a viable portfolio diversifier. This is because fine wine price movements show very little correlation to other types of assets.

It’s not that wine moves contrary to other markets, but that the dynamics are independent of other markets. Quite literally, a wine investor can ‘hedge’ their outcomes by adding fine wine to their collection.

While some commodities have had a turbulent ride, wine has delivered some stability, outperforming major equities and other commodities in 2022.*

INVEST HERE: Why wine? Buying, storage, and sale of fine wine is simple, straightforward, and secure with Whisky Partners – CLICK HERE.

ENOUGH TO DRIVE YOU TO DRINK

With the UK economy currently on a bumpy road, beset by high interest rates and potential changes in government on the horizon, traditional investments are looking less than attractive. Schemes that offer fast growth and high yield, which are always risky, are in further jeopardy.

Remember the halcyon days of crypto currency? While some, early adopters, have no doubt benefitted from record profits, many have been left with a plateau investment, or worse.

It’s wise to consider the caveat: ‘if something looks to good to be true, it probably is’.

But also consider the legacy of fine wine. Produced for hundreds of years and savoured by billions of people. It’s a commodity that is only increasing in popularity.

And the export figures support that trend. The total annual global wine market is estimated at $400billion. There’s scope for considerable profit in a market of that size.

A NOSE FOR THE GOOD STUFF

Whether it’s your first sip or you are already a connoisseur, access to producers is crucial, both to buy and to trade wine stock. There are online platforms that can do this: offering valuations and auctions, but how do you know what to buy in the first place?

What if you could tap into expert insight, from people who have real-world experience of working in the wine sector? Or, have access to someone who knows the difference between collecting and investing and can steer you towards the best option for you?

Certain established producers, in regions such as Burgundy, the Rhône and Champagne regions, for example, can command premiums for their wine as it is globally accepted that their produce is of proven quality and therefore prized. Likewise, certain vintages which soon gain a reputation that sees availability decrease and demand rise.

HOW TO INVEST IN WINE

So, how to navigate the complex world of wine collecting? The answer is more straightforward than you’d think. By joining a reputable organisation, with a knowledgeable team and a personal guide who will help you build your portfolio. A no-pressure environment where you set the parameters, the budget and your objectives.

And once you’ve started to build your collection, you’ll need somewhere secure and insured (at replacement value) to store your wines, like our bonded warehouse.

Whisky Partners offers all of these advantages: from buying to exiting - we take the mystery out of wine collecting. Membership is free and there are structured investment tiers, so you can control your budget. And while ever you are our client, you’ll receive regular account statements detailing your wine. We operate with absolute transparency, no hidden ‘small print’, just wonderful wine!

Unlike spirits, wine has a ‘plateau’ maturity, after which it begins to deteriorate and therefore should be enjoyed in a glass or sold. Your personal advisor will flag up any wines in your collection that falls into this category.

Is wine a good investment? It really depends on what you expect from your wine

We have many types of investor. Wine lovers who just want to build their own collection to drink, to share or to pass onto another generation, and other collectors who know that adding wine to their assets will deliver a return. Whichever type you are, speak to an expert at Whisky Partners and be assured of honest, expert and friendly service.

We put the ‘win’ into wine.

Cheers!

* Source: The Evaluation of Fine Wine Investment, a report by Liv-ex, the world’s most comprehensive database of fine wine prices.

INVEST HERE: Why wine? Buying, storage, and sale of fine wine is simple, straightforward, and secure with Whisky Partners – CLICK HERE.

Disclaimer:

You must be 18 years or older to purchase alcohol-based products from Whisky Partners. Information provided by Whisky Partners is of a purely general nature to inform you of the wine, whisky and rum cask industry, and it does not always relate to trades, sales or returns carried out or achieved by Whisky Partners.

Please note that any numerical figures or investment performance results mentioned on our website, connected or related sites and content are based on historical data and are provided for informational purposes only. Past performance is not indicative of future results, and there are no guarantees of any specific investment returns.

All investments involve risks, and you should carefully consider your own financial circumstances and seek professional advice before making any investment decisions. Whisky Partners employees are not tax advisors and cannot advise on the tax benefits of asset investment. Whisky Partners is not authorised or regulated by the Financial Conduct Authority, and we do not offer any specific financial advice on the use of assets as investments.

Fees do apply: please see our terms and conditions.

Blackford Casks Ltd t/as Whisky Partners will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information within this website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.