Wine Collecting for Investment: Building a Profitable Collection
Glass Wine Cellar by Vinotemp
Prior to investing in a bottle, conduct plenty of market research. For the most part, scarcity and exclusivity are some good indicators that a wine will appreciate in value, particularly if the winery has a longstanding reputation. For example, the Screaming Eagle winery in California released a limited run (600 bottles) of its 2010 Screaming Eagle Sauvignon Blanc for $250/bottle only to its longstanding customers. Spectrum Wine Auction recently sold a six-bottle case of the wine for $7,000. You may also find it lucrative to purchase wine en primeur, which means buying the wine after it is made but before it has been bottled. Buying wine before it is bottled is regarded as the best way to get the lowest price. Other factors that affect the value of wine include the vintage, economic conditions, and future aging potential.
When you are ready to make your first major purchase, you may find it helpful to hire a wine merchant with the knowledge and reputation to ensure the wine you are buying is authentic. You can find a list of the world’s most expensive wines and their values here.
Determine your budget for investing in wine and make sure it is one you are truly comfortable with. Other expenses will occur in addition to the buying of wine which include insurance and proper storage, which we will discuss next.
Wine storage facilities are available for the cost of a monthly membership. These storage centers provide the same benefits of a wine cellar with added security. They are not as convenient, however, as having a cellar in the privacy of your home.
When it comes to investing in wine, ample research, proper storage, and patience will result in a fruitful payoff. Don’t forget, the best part of investing in wine is the option of drinking and sharing your collection for your own enjoyment.