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How to Invest in Fine Wine. Investing in Fine Wines. Start a Fine Wine Investment Portfolio. Fine Wine Investments

Fine Wine Investments

There is a theory about investing in fine wine. Buy four bottles, and once the value has doubled you may drink two bottles and you will still have us much invested as you began with. If, however, its value has decreased over that period of time there is a simple solution. Drink all four bottles and your loss won’t trouble you in the least.

In reality though the value of fine wine rarely decreases, if indeed it does at all. There is a very good reason for this. Each vintage by definition becomes a rarer commodity each time a bottle is opened and consumed. Simple economics, but unassailable logic. This is why fine wine investments have consistently outperformed all other acknowledged investment forms over a period of some three decades. In fact over the past quarter of a century values have increased by an average of fifteen per cent annually. Wine is a stable market and comparatively low risk.

Those who might be tempting to consider fine wine investments as being a relatively new or gimmicky concept might be surprised to learn that the market actually as a history dating back over 300 years. Wine as a commodity is portable, easy to access and it is tax free.

Other than its inherent scarcity, there are a number of outside factors that may affect the rate by which the value of a fine wine increases. The most significant one is publicity; a well-placed article about the merits of a particular vintage may lead to it becoming sought-after, both by investors and connoisseurs, thereby enhancing its value as an asset.

Another is the terms under which the fine wine was originally purchased, and herein lies a particular pitfall. Wine is invariably purchased from merchants, who happen also to be amongst the most expert on the subject and who therefore tend to double up as “advisors”. One often finds oneself in the position of having to take advice from the seller when dealing in fine wine investments and an artificial mark-up leaves the investor having to recover lost value before making any real profit on the investment. Worse still, fine wines purchased from less reputable merchants may be other than as advised on the proverbial tin, and potentially worthless.

It is essential before entering into any kind of contract of purchase agreement that the buyer of the fine wine is entirely confident in the integrity of the advice given, as well of course as in its source. Learn more about investing in fine wine as part of a diverse portfolio at the above fine wine investment companies and investment websites.

 
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