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Investing In Wine

Investing In Wine: 5 Things You Should Know

It’s time to stop hoarding your old Pokemon cards and movie memorabilia, and start looking into investments that are more age appropriate. We’re not talking about real estate or stocks but looking at an alternative, fine wines. Before you go trying to sell that $10 bottle of red you picked up after work last week, here are some things you should consider when investing in wine…

Investing In Wine

What Estates/Regions To Buy From

Here in Australia, we make some truly world-class wines. Unfortunately, they’re not always the most sought after when it comes to investing and subsequent selling. The vast majority of investment wines are made in the French regions of Bordeaux and Burgundy. These areas have the ideal climate and conditions for not only producing a high-quality product but producing it consistently. Bordeaux, in particular, has experienced something known as ‘The Rule Of Fives’, in which they produce a truly phenomenal vintage every five years. The last was in 2010, which means everyone’s eyes are on the current 2015 season – due to be released in 2018.

How Long To Keep Investment Wine

It’s suggested to keep a wine investment for at least five years. Demand and value increase over time as the product both ages, of course, and becomes rarer over the years. This is thanks to people consuming their wine, so stay strong, resist the urge to uncork and reap the benefits in the future.

Investing In Wine

How To Store Wine Properly

Keeping your investment wine in professional storage is a good idea because a) it will stop you from accidentally drinking it when you’re not in the right state to make that call and b) the wine will be stored in the perfect environment needed to keep it in top condition for when you’re ready to sell. Wine has to be kept in a specific climate with a particular amount of humidity too in order to retain its quality. This means that, unfortunately, your garage won’t be ideal. There are a plethora of wine storage facilities to be found throughout Australia. They also provide thorough security, so you can rest assured your investment is being kept safe.

Minimum Recommended Spend When Investing In Wine

Experts at the Wine Investment Fund, located in London, recommend starting with at least £10,000 (approx. AUD$17,000). This is to get you a few bottles (at least) of the good stuff, plus it factors in such things as the cost of professionally storing the product and insurance. When it’s finally time to sell, you’ll probably use a wine auction service, which will also be an additional cost.

Investing In Wine

What does ‘En Primeur’ mean?

A term you may see a lot when you’re looking into the idea of investing in wine is ‘En Primeur’. Also known as Wine Futures, it’s essentially the concept of purchasing wine while it’s still in the barrel – usually a few years before it will be released. Without seeing or tasting the final product, you’re basically buying based on the reputation and history of the particular chateau. There are a couple of reasons why this is a good idea. Firstly, buying En Primeur is usually cheaper than buying the wine after it has matured and been bottled. It also guarantees your share, especially if the particular vintage will only be available in a limited quantity, or if it’s in high demand. Langton’s, an Australian fine wine marketplace, are currently offering Bordeaux 2015 En Primeur, which is set to be released in 2018. By all accounts, conditions in the region have been perfect and everyone is preparing for one of their best years yet.

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