What’s more fun, investing in more tech stock or investing in luscious wine.... easy answer.... WINE!!! The alluring prospect of physically tasting one’s investment just about outweighs most anything for me. Here is a key thing to think about…. the available quantity of fine wines continues to shrink day by day, and as history has revealed, in a weak or strong economy, people will continue to drink!
Fine wine is an art, a delicious, consumable, piece of art. A work of art that is worthy of enjoyment by your intimate friends and yourself. Or perhaps wine is a work of art that is worthy of cashing in for a sizable monetary investment gain.
If what you are looking for is wine as a tradable commodity, then what type of collector are you? How do you go about collecting? How do you begin? Here is where the practical collector meets the technical collector.
Practical Casual Collector ⎯ these are the collectors who learn about wine through friends, through weekend trips to various wine countries, and then, as years pass, realize that they love wine; the palate has matured and one’s enjoyment has therefore become more refined. The majority of collectors are practical, casual collectors ⎯ fantastic! But where does one go from here?Understanding the class of wines is of foremost importance, so here come the “IGWs,” defined as investment grade wines. The best place to start is by honing in on what type of wines are investment grade wines. Hint: Bordeauxs and California cult wines are the most in-demand wines for financial return.
The wine industry has it’s critic’s/analyst’s just like any other investment market. These are the “experts,” namely Parker & Wine Spectator. Should you care what they think? Probably.... wine prices can soar or sink in response to their analysis. Which often means that the earlier you jump on the provided information from wine critics, the greater your potential profits. It’s not rocket science, but does this make it fun?? Well, not just yet; so now that you have decided on your “IGWs” there are 4 more essential steps:
- How much do I buy? At least 3 bottles to 1 case plus extra for your enjoyment from tasting during the 6-10 yr investment path.
- Provenance: Winery direct is best, and second: a reputable wine merchant. Proving where your wine was purchased will be the key to resale.
- Storage: Home or off-site cellar with temperature, humidity, and light control.
- Insurance: Please remember to insure your investment!!
Now.... go out there as often as you can and visit the wineries and taste every wine. Find a wine that pleases your palate; there’s no sense in investing in a wine that you, yourself, can’t enjoy…. you will learn how to choose wisely!!
Cheers to using your love of wine on a path that hopefully leads you to the next vineyard!!