Business and Management

Wine as an Investment: Getting It Right

How can wine be used as an investment? What should you pay attention to before and after investing in wine? Wine has been used as an investment for centuries, but primarily as a commodity investment. The idea of investing in individual bottles of high-value wine is more recent and has gained in popularity since the last major financial crisis. Clever investors stand to benefit from exceptional capital gains.

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The first thing to understand when considering a wine investment is that not all wines are equal. The value of the wine is strongly influenced by the region and more specifically the cellars in which it is produced. The year in which the grapes used to make wine are harvested is another key factor. The grape varieties used also play a role. Personal tastes are of secondary importance in investment. Still, having good tastes in wine will likely give you an advantage as a wine investor.

Recent years have seen an increased demand for wine in countries like China which previously were not considered to be wine markets. The value of some quality Bordeaux wines has increased by 50 or even 100 percent over a single year. Before you take possession of the desired wine, you must make sure that you have adequate storage facilities. Incorrectly stored wine will not likely gain in value. The following basic rules apply to proper wine storage:

A constant temperature is necessary. The ideal temperature at which wine should be stored varies between individual wines and experts but is typically between 8 and 12 degrees centigrade. Some wines should be stored at 17 degrees centigrade. Secondly, a constant atmospheric humidity level of between 65 percent and 75 percent must be maintained. Insufficient humidity can result in the drying out of the cork. Too much humidity can cause wine labels to mold.