Wine as an Alternative Investment

Financial Adviser's picture

 

When it comes to all exotic investment, wine becomes the best alternative as years of experience shows wine, especially Bordeaux, is a successful and profitable initiative that anyone could ever think about. As we saw earlier, many exotic investments will depreciate in value over the year, which is a different case when it comes to wine, in which case it matures if kept under optimum conditions. It should be noted that not all wine will improve with age.There are those with set age limits where they lose taste. It therefore requires frequent close monitoring on the aging characteristics of the wine. This is done through wine tasting by the press and wine investors who in return determine the value of the wine at certain points.
 
Wine as an alternative choice proves to be reliable given the fact that it has been around even before the stock market. For example taking Bordeaux wine will be thumbs up on your side, since it is one of the greatest brands of time and is still stable on the market (over 200 years) even in this minute that you are reading this. Other great relatively cheap alternative brands include French Champagne and French Burgundy.
 
A wise alternative for the profit minded investor can be buying great wine signature like Bordeaux before it is even bottled in a method known as futures.The investor is at an advantage here due to demand rather than age. Whether you are an investor or in search for fame, wine storage is of essence to satisfy both gists. A great tasting wine means a high Return on Investment (ROI). You should also know that not all wine improve with age. A close monitoring of aging potential of different wines is intrepid in determining stage of maturity.Above all, retaining the products in a well conditioned cellar is what counts on whether you are going to move above the curve or remain among the crowd. ROI is also found in the cost involved in storing wine which needs be added to the total cost of the wine at the time of sale. For example, in Europe electricity costs are higher than any other place meaning the cost of maintaining the cellar at given temperature will go up. In short, wine cost can accumulate to $10 each month.
 
Investing in wine might look easy on the surface but it takes a lot of hard work deep down in the under surface. If you are not careful with your cellar the wine would change its taste and be awful bringing in massive unexpected losses. Maintain your cellar at 14 degrees Celsius, 65% humidity with a lock that can’t be opened after 8pm. Wine placement also come in handy.Never leave the wine in crates or in an upright position; they should be tilted in a way that makes the cork remain intact with the wine itself. This way, your wine is protected from problems of drying up making it loose flavour. A saying by Barclay will raise your awareness. "You need to identify what you want to buy," he says. "There are two types of people who spend money on wine: the first only wants to invest money and isn't interested in product. A serious wine enthusiast will put down money every year for his or her cellar. That's a classic wine investor or wine buyer."
 
If the conditions are met, then it will be voila making money easily. Wine as an alternative investments, is still a daunting thought, in particular when you compare it with other forms of investments such as stock or real estate, surely who wouldn’t have the thought of taking a sip of the matured wine only to get yourself galloping the entire cellar with friends and family. But if you think you have the self control in you, the door is wide open for you to show off your enthusiasm. Remember to research thoroughly; read international wine magazines and visit an online site to update yourself with the latest trends in the wine industry. Most important, you should understand the market that is prevailing time after time.