If you’re looking to bump up your bank account in 2015 then you’re in luck, as this week the Ideal Wine Company shares five things you need to know to invest in luxury wine.
A Goldmine on Your Hands
Because we are a supplier of stellar vintages at prices you can actually afford, no one understands what an effective investment luxury wine can be better than the Ideal Wine Company.
Find the right bottle at the right price and you have a goldmine on your hands. By the time you get round to selling it, your wine will have appreciated in value to such an extent that it’s bound to make you a mint. After all, wine only gets better with age.
Do Five Things to Effectively Invest in Wine
Yet you need to know how to invest effectively if you hope to end up with a healthy profit for your efforts. That’s why if you’re looking to invest in fine wine over 2015, the Ideal Wine Company suggests you do the following five things…
- Your Research: Which wines are on the up? Which are going down? Which have proved valuable to investors over the long-term? These are all questions you need to ask to effectively invest in fine wine, yet you’re never going to know the answers if you don’t do your research before you buy.
- Buy the Best You Can Afford: Follow the cardinal rule – you have to spend money to make money. Because fine wines tend to appreciate significantly in value as they age, the more you spend, you more you stand to make when you decide to sell. Yet this is still an investment – a risk – and you should never spend more than you can afford to lose.
- Invest for a Minimum of Five Years: According to the Telegraph, ‘fine wine investment has almost always produced positive absolute return in every five-year holding period since the first recorded, back in 1999.’ Need we say more?
- Store Your Wine Correctly: If you’re looking to make a healthy profit from investing in wine, you need to look after your purchase so it can appreciate in value as it ages. That means you need to store your wine correctly. We’d suggest you do so by placing it in a government licensed bonded warehouse.
- Be Cautious With En Primeur Wines: ‘En Primeur’ refers to the process of buying wine whilst it’s still in the barrel. Buying wine en primeur can be an effective way to ensure a higher profit margin from your investment, as typically buying en primeur allow you to make your purchase for its lowest market price. Yet you need to tread with caution – as the wine is at it’s youngest, it’s a bigger risk when you buy en primeur.
Think Carefully Before You Invest
In other words, no investment is a safe bet. There are always risks attached. Yet if you want to do your best to negate those risks and act in the way most likely to see you walk away from your efforts with profit, you need to think carefully before you invest in any luxury vintage.