Wine investors should always rely on expert advice when venturing into investing in fine wines, since only 1% of wine made is of investment quality.
One of the golden rules of wine investment is to buy the greatest wines from the greatest vintages. Usually limited in quantities, they are always in strong demand. Such wines should, under present market conditions, increase in price of between 50-100% before reaching full financial and physical maturity. The crème de la crème from any top vintage may increase even more.
The Red Bordeaux is still one of the best investment bets. Aside from wines like Burgundy and the Rhône Valley, Australian wines may also command prices as high as the top Bordeaux. But Bordeaux remains the most reliable, consistent and the most attractive area in which to invest.
Buying wine futures or 'en primeur' is another way to invest in wine. This involves buying the wine in the summer after the harvest but not actually receiving it for another 18 months. While there is no guarantee, historically, the prices almost always increase over this period.
Wine Investment average returns
The average return from investing in fine wine from good vintages is about 15%. To make the most from your wine investment portfolio, we recommend a minimum of 2 to 10 years. Short term investing, of 2 to 3 years, can bring healthy profits but anything less than 2 years is too risky and the returns are not worthwhile.
Generally, you should select from wines that are:
- from a limited production
- from the best vintages
- produced under strict regulations
- from a recognized system of classification
- complex in taste and longevity that improves with age
- stored correctly or in professional temperature-controlled cellars