Wines From the Vineyards of Bordeaux Make The Best Wine Investments
Wine Investment Tips...

Top Ten Investment Tips

1. Shop around for the best prices, but make sure you only deal with established merchants with good reputations. This particularly applies to wines purchased “en primeur.”. Several merchants have gone under in the past, leaving customers both penniless and thirsty.

2. Avoid VAT and duties by purchasing wines “in bond.”

3. Don’t buy into big names without checking into them first. Do your research and make sure the name and vintage is a sound choice. Make sure you know the origin and history behind the wines you are buying. Only purchase unmixed, sealed cases in their original wood.

4. Plan on investing in wine for a minimum of five years, but be prepared to sell earlier if advised by a qualified professional.

5. Make sure your wine is completely insured and stored under your own name. Keep them in a professionally managed bonded warehouse either independently or through your merchant. This will ensure your wines are kept in good condition, as which is vital for their resale value. It also means you will avoid paying VAT and Duty when you re-sell your wine. However, do compare storage facilities and prices as they can vary quite significantly.

6. Do not pay up-front commissions when buying through an investment company. Some shady companies have been known to charge 25%. Do not deal with anyone who uses cold calling or pressure sales either. Do not deal with anyone who operates via a PO Box as such people can disappear without a trace, along with your money.

7. Bordeaux makes up over 90% of the wine investment market, so stick with investment grade, red Bordeaux from the best vintages. Back vintages generally offer greater investment potential than more recent ones.

8. Wine does not usually attract capital gains tax as it is considered a wasting asset, thereby making it a tax-friendly investment.

9. As with any risky asset, do not invest more than you can afford to lose. Although wine has proved to be a strong long-term asset, it does have its ups and down in the short term. Only make wine a small fraction of your overall investment portfolio.

10. Purchase wines as close to their opening prices as possible. Be cautious of any prices that are too high or too low. If the price seems “too good to be true,” it probably is. You should try to invest at least £10,000 if you expect to have a return.