Buying Wine Investments
Fine wine investment has continued to increase in popularity since the 90s. It is important to remember that wine is a long-term investment that requires a minimum of 7-10 years. Anyone promising you quick results is not to be trusted.
The UK government warns against up-front commission when buying investments. This is often the big red flag; if a company is charging commission up-front rather than at the point of selling, it is advisable to proceed with caution. Remember, wine is a long-term investment, so an up-front commission is not in the investor’s interests.
We strongly advise that when entering into a wine investment you do your own due diligence. Using websites such as wine-searcher.com and cellartracker.com, you will quickly be able to gauge whether you are getting a fair price, or as often is the case, lining greedy brokers’ inflated pockets.
A decent wine portfolio will cost approximately £5000 to get started. You will also need to store the wine. Bonded storage warehouses are the most popular option as they avoid having to pay duty or VAT on your stored wine. However, it’s important to take into account the cost of storage when investing in wine as it may affect how worthwhile it is, especially with lower value cases.
It is also vital that you have your own storage account; with many unscrupulous firms, the wines are held in their names, this gives you no security or control over your wine investment.
Investment wine requires a lot of thought and research to avoid scams and schemes. It is often advertised as “recession proof” which is certainly not true.
Never invest more than you can afford to lose; no investment is fool-proof, least of all wine investment, and it should never be a majority part of your portfolio.