Do you consider yourself to be a lover of wine? Do you have a wide array of varieties that you love and your collection seems to grow each year? If so, maybe it’s time to get more serious about the wine you have on hand and look into wine investing. This is a hobby that elevates your love and passion for wine to the next level, and actually can have you building a little nest egg all through the wine that you purchase and store.
So, if you’re just starting out, here’s the Underground Cellar guide to wine investing.
You Don’t Have to Invest in Luxury Asset Wine
The first tip is not to get too caught up in worrying about luxury asset wine. These can run hundreds of thousands of dollars in price, so likely they aren’t going to be the one you invest in. There are plenty of much more reasonably priced wines you can invest in that will do an excellent job of increasing in value over the years, and yet won’t cost the price of a house.
Stick with the Classic Regions
A good rule of thumb when picking which wines to invest in is to stick to the well-known classic regions. You really can’t go wrong with these. These would include regions like northern Italy, Burgundy, and Bordeaux. These regions have created a strong name for themselves, and people know and appreciate the product coming out of the areas.
Don’t Buy Anything You Wouldn’t Drink
Another tip is to only purchase wine you yourself would drink. What is the reason for this tip? Well, there is always that off-chance that a bottle you purchase decreases in value over time, so someone is going to need to drink it.
There Is a “Right” Time to Buy
Just like with the stock market that goes up and down, the wine market can also see the same kind of ups and downs. With that said, there are right and wrong times to buy. Ideally, you want to buy when prices are low, with the belief that it will go up in value at some point. It’s not unusual to take about 10-20 years for an investment wine to actually reach peak market value, so knowing when to buy and having patience will be important.
Ensure the Wine is Stored Correctly
The final tip is to ensure that each of your bottles of wine is stored correctly. This is what will keep the integrity of the wine so that its value can increase over the years. If stored incorrectly, it will negatively affect the flavor of the wine, which then affects its value.
Your storage solution should be created or built before you even collect your first bottle of wine, as you want to get off to a professional start if this is to become a serious investment stream.
A Great New Investment to Embrace
If you’re ready to take your love and enthusiasm for wine to the next level and start investing in it, these basic tips will most certainly help.