Oxstones Investment Club™As prices for fine wines continue to increase, online services allow investors to buy and sell effortlessly. You can purchase wine for pleasure, or you can invest to make money. Wine collectors purchase on average up to five cases of fine wine. Their strategy is to let the wine stay in the cellar for 10 years, afterwards consume two cases, and trade the remaining three. This way, they’re able to earn enough money to purchase another five cases of wine and repeat the procedure.
Investing in wine can bring financial and moral satisfactions
Things have changed over the years, and wine is now considered an excellent investment option. According to various market watchers, some important aspects have led to this change. The overall price of some of most traded and collected wines such as Bordeaux increased significantly during the first decade of the century. This captured the attention of numerous buyers who wanted to make a profit and didn’t care too much about the beverage itself.
Besides, the ongoing demand that comes from Asian buyers has also influenced this impressive growth. According to Pete Goss, a specialist merchant who works for Richard Dawes Fine Wine, the Asian market appears to be driven by drinkers, which means that the wine is consumed and the stocks are drained in a blink of an eye. China has numerous rich buyers interested in trading wine, especially Bordeaux.
What’s pretty interesting about most tycoon collectors in China is that they’re not following the western connoisseurship. Rather than spend years to build an exquisite wine cellar, these growing enthusiasts choose to buy the finest bottles of Petrus and Lafite to make an instant collection. This makes the Chinese marketplace incredibly dynamic.
Statistics and expectations
Even though prices increased considerably between 2003 and 2011, they declined by nearly a third during the past two years. This was the result of the financial crisis that affected the world. Current rising prices are nicely embraced by wine merchants and their clients, but they also lured in fraudulent vendors who entered the market only to make money.
If you want to make wine investment, you are advised to purchase through a wine merchant. Prior to closing the deal, make sure you investigate his history. The internet is a very efficient tool when it comes to this aspect; it can help you uncover details about the merchant’s reputation and former clients. No one says that it will be easy for you to start from scratch. To a trustworthy supplier you’ll be compelled to do a thorough research.
Wine sellers who are not that famous will offer more attractive prices. Pay a lot of attention if you don’t want to end up investing in rip-offs. Access websites like www.wineinvestment.com and have a closer look at the prices. They allow you to observe the performance of your assets with the help of charts and graphs. The website can serve as a trading platform for both wine drinkers and investors. If you want to sell your wine, you have to specify the price that you’re willing to accept and buyers will point out the price that they’re willing to pay.
Make sure that you’re paying a reasonable amount of money for the wine that you intend to purchase. Both parties have to check to see if the wine they’re trading matches its original description.
How do you know which wines are the best?
That’s definitely a tricky question, considering that the variety is endless. First of all, choose wines that you’re personally fond of. If you’re not selling, at least you can drink it. Consequently, you might want to think of various investment parameters; stick to them if your wish is to generate great returns. Your collection should be made of 75% Bordeaux wines, and 25% ‘trophy wines’ that are extremely rare and exquisite.
First growths like Haut-Brion, Latour, and Leoville-Baron for example, are excellent types. As a final note, sellers should expect to reap the benefits of their investment in 10 – 15 years. As long as you have a properly managed portfolio, your returns should be somewhere between 10 and 15% per year, which should be enough to build up a strong profit.
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