In search of alternative and extraordinary investment opportunities, I came across wine. Wine as investment is of course especially interesting to me as a wine lover. So, maybe it will be something interesting for you to take into consideration as well.
Especially in recent years, wine was a very lucrative investment, so I discovered more and more investors and wine lovers interested in this type of investment producing high growth rates. Especially in comparison with the stock market as well as savings accounts, the noble grape juices offer much less short price fluctuations and a much more stable continuous return of investment is usually given. However, before you begin to buy some wine bottles from your wine merchant, you should consider the following:
Experts say that only 2% of all wines are suitable as an investment.
The wines that you can buy in the supermarket are completely unsuitable.
Finding the right wines
The key word here is “Bordeaux” as well as “Burgundy”, these French wine cities are “the” lookout wine centers of Europe or the whole world. Although in the USA, South Africa, Chile, Spain, Italy or Australia have more and more winegrowers who win high-profile awards and more and more, in wine connoisseurs circles, to talk about, so far Bordeaux and Burgundy wines have been the number one topic in money-making circles.
Since there prices of wines, compared to stocks, is very transparent, it is even possible for laymen like me, without great effort, to “see through” the prices of wine. So, you do not have to let yourself be taught by “blasé” sommeliers about your investment in wine, if you can not pronounce the French tongue twisters correctly.
Similar to whiskey, there is also an established rating system in wine, the so-called wine index, which assigns each wine an exact score.
As a rule, wines are steadier in their performance and more reliable than stocks or other securities. However, you should remember that a severe economic crisis could reduce the demand for fine wines as well.
For example while the wine index continued to grow in the years between 2004 to 2008, the crisis year 2008 also caused a significant decline on the wine markets.
Nevertheless, the collapse of the time was much smaller than at the international stock exchanges.
Where do you get the now high-quality wines with good yield prospects?
For you as a private investor is certainly the best choice when buying quality wine with an authorized dealer.
However, the really lucrative and exquisite wines are usually sold out, so you might have difficulty getting straight to them. You can, however, make a reservation at the wine retailer or the winery directly, this is referred to in professional circles as a “subscription”.
When buying wines for investment, you should make sure that your chosen wine can show at least a score of 80 points in the Parker wine buyers guide which is the wine bible. Interesting to investors are also mostly red wines from Burgundy and Bordeaux, which are “matured” already between 7 to 10 years. White wines are usually not that endorsed for investment purposes.
Wines from other growing areas, such as Tuscany or La Rioja, have not achieved any meaningful returns in recent years, even though these wine drops are respectable for a lot of wine connoisseurs.
Which wine makes for the best investment?
Your investment in wine is the safest, if you focus on wines with a maximum award of 99 or 100 points, but these top wines usually have proud prices. According to the index of the “Liv-ex” wine exchange, only 10% of the traded whales in wine have a rating of more than 97 points.
Among the absolute top wines for good returns on investments are the names of Château Lafite-Rothschild, Château Mouton-Rothschild (which only has a limited circulation of 300,000 bottles), Château Latour, Château Margaux and Château Haut-Brion.Some other excellent and exquisite wine names in the business worth looking at are also Pétrus, Cheval Blanc, Le Pin, Ausone as well as Château d’Yquem.
First-class vintages are mainly solar years, which help the grapes to more quality, these include the years 1982, 1986, 1988 and 1990 and the vintages of 2000 and 2003. Especially the year 1982 turned out to be a century vintage investment for investors, because this noble drop could to date, reportedly increase in value of about 1000%. Not bad as an investment, right?
If this has aroused your interest, it makes sense, if you look around the “Liv-ex” wine market and then, after careful consideration, make your first investment in wine advisedly.
I would love to have your thoughts on this alternative investment opportunity in the comment box below. I look forward to hear from you soon.