Just how much money can you make from wine investments? Between 1993 and 2013, a diverse portfolio would have given you an average of 13.62 percent in returns on your investment, which is . However, wine investments can still be risky, and you need to know which wines are going to give you the best returns in the future. To find this out, research current market prices using , and consider investing in producers that are in highest demand among your peers. As for your budget, experts suggest setting aside at least $10,000 for your first batch of bottles. You should be willing to lose all of this money, so if you can’t afford to lose the $10,000, don’t gamble with that money on wine. Which wines should you spend your $10,000 on? That depends on your experience level and contacts. For instance, if you’re on a , you’ll want to rely heavily on the low prices offered on the mailing list, then sell any wines you don’t drink as soon as possible. This will give you the fastest returns on your investment, especially if you sell the wine shortly after it has been released.

However, if you’re not on a mailing list for a sought-after winery and you don’t have any close contacts who sell authentic wine for a steal, your next-best option is to look for wines on the secondary market that stand the test of time. that keeps its wines under safe storage conditions and that checks its bottles for authenticity. Once you buy a few bottles, keep them under storage until they reach peak maturity. This will often take five or even 10 years, but is well worth the wait because the bottles will sell for a much higher profit once they reach prime drinking age. You’ll want to consider the quality of the producer and the vintage to find the best investment wines that will cellar for decades. First, look for wines that have . Next, read the for the vintage to find out when critics think the wine will be ready to drink. Vintages that reach maturity in about five years will give you the fastest investment return, but they might not be worth as much as bottles that you buy very young and cellar for 10 or even 20 years.

The best wine investments take a decade or more to mature. this phenomenon well: the older a wine gets, the rarer it gets. For instance, a producer in France might only be capable of making 5,000 cases of wine every year. After those cases have been sold, many of those wines will be consumed over the years. By the time 15 or 20 years have passed, there might only be 100 cases of that vintage left in the world. If you own one of these cases, you can charge a fortune for that wine, even if you originally bought it for less than $100. However, a mature wine is only as good as its cellar, and the best way to make a profit is to , because a wine can easily spoil after 20 years in the wrong conditions. To make the most out of your investments, you’ll want to diversify your collection. Investor Mark Ricardo explains that you never want to depend on a single bottle for your retirement. That said, a truly diverse collection isn’t easy to collect, and a good one requires at least $100,000 in up-front investments.

This is why you should build your collection patiently and slowly, investing in the top wine regions that you can afford. Old World regions like Burgundy and Bordeaux are excellent choices for beginning collectors because these wines are high in quality, rare, and in high demand among collectors.buy a wine station As an example of vintage, take a look at from the year 2000. best wine country wineriesThis vintage was worth about $2,000 on high-end estates in the region, but today, those same bottles sell for more than $10,000. best wine and spirit offersWhy is this the case? best juice to make wine out ofBecause the weather in 2000 was near perfect for winemaking, resulting in multiple perfect scores on the most popular wine labels that year. best nyc wine bars 2015

Now that these already-perfect wines have matured, they are worth more than five times as much on the market. The best method for investing in wine is to research the highest quality vintages from top regions like Burgundy, Bordeaux, Napa Valley, and Tuscany, buy cases from the most recent high quality vintages, then keep these wines under lock and key until they’re ready to drink.fine wine for sale uk About 75 percent of the investment-grade wines on the market today come from Bordeaux Grand Cru estates, but you don’t have to stick with this region to make a profit. Other wines worth investing in are Super Tuscans from Italy, cult wines from California, and Premier Cru or Grand Cru Burgundy. The best producers are those that make fewer than 20,000 cases of wine every year, and that make wines which will cellar for at least five years, preferably more. You might be tempted to invest in lower-priced, off-vintage wines, but this is a dangerous process for beginners.

It’s simpler and safer to stick with bottles of verifiably fine wine when you first get started, rather than gambling on vintages of lower quality. Whether you are starting your high-end wine collection or adding to an established portfolio, Vinfolio is your partner in buying, selling, and professional storage. Contact us today to get access to the world’s best investment wines.If you’ve been skeptic about wine investments it’s time to take note of all of the recent changes that have made it easier to do. Today, there are even investment funds that focus only on wine as well as 3 wine stock exchanges that are chock-full of potential investment gems. Should you need to protect your wine assets while they build equity, there are now dozens of professional storage solutions for long-term aging. But how do you get started in wine investing and what should you expect? –And perhaps more importantly– How do you liquidate your assets (and I don’t mean drinking!) when you are ready to sell?

Wine investing is an enticing prospect because “Worst case scenerio, I can drink it” However, if you plan on making money in wine investing, you need to separate some of your more quirky taste preferences into specific wines that have time-growth potential. You will also –most likely– not even physically touch the wine you invest in. Let’s find out what the prerequisites are to wine investing, including how much to expect to spend. Prepare to Wait 6-10 Years Wine is not typically a fast turnaround investment. Once you invest, expect to wait a minimum of 5 years before selling. If you want to build a short term portfolio, look into En premier wines from Bordeaux. Minimum 3+ Bottles of Investment Wine Most wine auction sites prefer to sell wine in sets of 3, 6, 12 and 13 (the latter is for a collector who wants to try a bottle). By purchasing 3 or more bottles, you also give yourself the opportunity to start collecting verticals of single wines.

Some wine exchanges require full cases. Professional Storage is Recommended Storing wine in an insured temperature controlled facility is the best way to guarantee that your wine has excellent provenance and will sell. Think of it this way, if you were buying wine from auction, would you risk your money on a case that wasn’t professionally stored? Wine storage starts at about $18/mo for a locker that will hold 7-9 cases of wine. Brokers and merchants in the UK prefer a wine that is “In Bond” which means it’s purchased and stored in a bonded warehouse that avoids the costly 20% excise tax. Expect to Spend $8,000+ to Get Going When you add up the cost of wine storage (at a minimum of $360/yr), insurance and the hassle of selling your collector wine, it’s a good idea to start with a sizable value of wine assets. As an example of what to expect, the Wine Investment Fund in London requires a minimum of a £10,000 for a startup expense. Getting started with investing in wine is a lot like any regular investment.

Figure out what you want your wine to pay for. Perhaps your next wine country vacation? Or maybe you’d like to have an underground cache of rare gems to be enjoyed with family and friends. What you choose will affect what kinds of wines you should buy as well as what types of ancillary expenses you’ll have. For instance, if you want to have a cache of wine in your home, you’ll need a cellar and wine insurance. Wine insurance is very useful if you store expensive wines in your home. by cellar management team, Cellar Advisors. An investment wine should have all the traits of an age-worthy wine, but it also should be in demand when it sells. The most in-demand investment wines are fine Bordeaux and Grand Cru Burgundy. Prestige wines such as these start at $600/bottle and are offered in 6 bottle wooden boxes. When buying in this market, buy by the case and do everything you can to create a paper trail of provenance to show the wine is not fake. If you plan on investing in French wines, it’s importantant to make your wine easy to sell on the internationl market.

Is My Wine Worth Cellaring? Besides wines from France, Napa Cabernet Sauvignon and tête de cuvée Champagne are also very collectible. When you buy wines from regions other than Burgundy and Bordeaux it is important to buy flagship wines –successful wineries that have made a name for their respective region. While flagship wines might not appeal to your sense of discovery, they are more likely to sell 10 years down the line. In recent years, collecting US cult wines have offered great investment turnaround because of a growing international appeal. A few cult wines that have become knockout successes are: If you’re in the US you’ll most likely be liquidating your wines through an auction of some kind. In a wine auction your wine is sent to the auction warehouse and then auctioned to the highest bidder. Online wines auctions act a little more like ebay than a traditional auction. There are many different auctions houses around the United States including: When you consign your wine the auction house will take a cut of the sale.

The commission ranges from about 0% (if you accept store credit) to 20% of the sale. There is also usually a minimum consignment amount anywhere from $1,000 – $10,000 of wine. With online bidding, oftentimes you’ll have the power to either accept or decline a bid(if it’s under the valued mark). UNITED KINGDOM ONLY There are now three wine exchanges in the UK: Berry Bros. & Rudd (BBX), London International Vintners Exchange (Liv-ex) and Cavex. The three programs focus mainly on top Bordeaux and also handle logistics. In the UK, wine investments are stored in ‘bonded’ temperature controlled warehouses. Bonded wines avoid the 20% excise tax but also must remain in a warehouse until the tax is paid. These wines are very desirable to international buyers, restaurants and brokers. If you invest in these markets it is possible to never even see your wine. Berry Bros & Rudd and Cavex are available for any consumer with a few prerequisites. If I were to build a Wine Investment Portfolio, I would most likely specialize in a specific region and select a few producers that I know will continue to prosper.