Perhaps one of the more obscure investing options, investing in wine is growing in popularity in Australia and people continue to lust after rare vintages for their collection. However investing in wine isn’t as simple as going down to your local bottle shop, grabbing random bottles from the shelf and sticking them in your basement. Serious wine investors know that it takes a keen eye, patience and ideal conditions to make a profit from vino.
Here’s our top tips for this considering investing in wine if you really must:
Take a Long Term View.
We all know that wine gets better with age, but unless you’re able to acquire a rare Château Margaux you should be prepared to wait at least 10 years before your wine collection appreciates in value.
Single Bottles Won’t Cut it
Most high profile collectors prefer to acquire rare wines in sets of 3,6,or 12. This allows them to sacrifice one bottle to taste and ensure the wine is still palatable.
Ensure Proper Storage
Aging wine is a delicate process which requires perfect conditions around the clock. Whilst it may be tempting to store your wine in your local Storage Gold Coast facility, wine is better kept in a dedicated climate controlled facility to preserve its characteristics.
Expect to Invest Significantly
As previously mentioned, you’ll need to start out with around $5-$10,000 available in liquid funds in order to realistically expect a profit from wine investing.
Whilst vino connoisseurs may love the idea of spending thousands on wine that is likely to never be opened, here at the Macro Investor we’d think there’s better places to invest your money.