Misconceptions about wine investment

Saturday, September 7, 2013

Misconceptions about wine investment



People have been investing in wine for centuries. With the current ups and downs of the financial world, the wine market upholds its enormous value. In spite of earning regular yields of 10-20%+ per year and exceeding blue-chip stocks for the last 150 years, several potential investors are not convinced that fine wine is a worthwhile investment. Are you among those investors who think fine wine is a troubling business? Then it’s time to set some things straight as most assumptions are baseless.

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Mature wines tastes fantastic and are more valuable

Nearly all wines made today are aimed to be consumed within the year they’re bottled. Red wines usually last for four years until they get rid of flavor but rose wines, with very few exceptions, ought to be consumed within a year. You may not know this, but very few wines will improve their taste and flavor in time. 


Investing in quality wines requires a small fortune

Given the status symbol that comes along with owning fines wines and the prices of wine bottles sold in auctions, it’s easier to believe that this statement is true. In fact, investment grade wines are among the most affordable investment opportunities on the market. Prices per case don’t exceed $1,000, which is extremely affordable in contrast with the money you need to buy property, a residence or any other similar asset. 

It’s imperative to have a wine cellar

Indeed, it’s essential to store fine wines properly. Light, atmospheric pressure, humidity and temperature ought to be controlled. Nevertheless, you don’t have to own your own wine cellar or build one in order to invest in fine wines. There are numerous specialized wine-storage facilities and wine merchants that have professional establishments where you can preserve your wine in exchange for a small fee.

Wine investment is suitable solely for wine connoisseurs

Forget about the wine investment stereotype. This prevents many people from taking advantage of this fantastic opportunity. Surely, it’s helpful to know a few things about wines, but you don’t need to have a degree or be a wine expert to invest. In spite of what most people think, wine expertise is not a requirement to make a profit from fine wine investments. 

As a matter of fact, with a little research you can increase profits and minimize risks, mainly if you focus on blue-chip French red wines that are produced by Chateau (the Bordeaux region of France). Having a specialized merchant offering you suggestions about what wines become more valuable in time and what you should buy, will be helpful.

If you have no knowledge about wines or counterfeit wines, you should consider using an investment company. They will assist you spend your money in the right products and will help you make a profit in a shorter period of time. However, keep in mind that there are fraudsters on the wine market too; thus you must be extremely careful when choosing a representative. 

Dicey speculations

No investment is 100% safe. Anyhow, more than 50 years of documented evidence show that investing in wines is a safe, long-term venture. Fine wine prices have not been affected by the recent recession, and they have actually done well during the economic downturns. Throughout the current financial crisis, fine wine prices have registered a modest but steady growth. 

It’s challenging to liquidate fine wines

Pure aberrations! Fine wines can be traded without any difficulty. Now you can even sell them on the web if you want. 

Chardonnay is buttery and oaky

Wines have an oaky taste because they’ve been preserved in oak barrels, and the butteriness is from the malolactic fermentation. Both of these choices are made by wine manufacturers, and neither one of them is related to the Chardonnay grape. Lots of Chardonnay wines are neither buttery nor oaky. People understand what they want to believe, and there are so many rumors out there related to wine investments that sometimes it’s tough to set aside fact from pure speculations. 

Wine connoisseurs are advising prospective investors to focus on engaging their audience. As long as you can get people to buy, your investment has ample chances of success. Search for reputable wines get informed and always be aware of the risks. Don’t pay attention to every myth on the internet and if you’re having doubts, just ask for assistance from someone who knows the ins and outs of exquisite wine. 

Author Bio: 

The article is authored by Jason Phillips. He is an advising expert at various investment sites like wineinvestment.com.

 

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