Many people are hesitant to try their hand at investments, as the term is often associated with complicated financial arrangements which are difficult for those without a background in finance to understand. For people that are looking for a simple and straightforward investment, wine is certainly one to consider.
One of the best ways to begin investing in this profitable sector is to get to know a seller who regularly imports wine from the winery which you are interested in. Provided you choose a reputable seller and develop a strong professional relationship with them, this is one of the best ways to invest in wine, as there will never be any question as to the authenticity and calibre of the cases you’re purchasing. Unfortunately, getting to know a trustworthy seller can take some time, and is easier said than done.
Another method of discovering wines which are worthy of investment is through the internet. Many online businesses sell bottles and cases of the world’s finest wines for investors and collectors. With this method, it’s essential to do your homework, and choose a reputable seller such as Imperial Wines of London, as there are some unscrupulous sites which sell wine which is not genuine.
When it comes to investments in wine, less is definitely more; look for some of the very best vintages that you can afford. The standard unit of investment for wine is a twelve bottle case. Some of the most expensive wines, cases of which often sell for thousands of pounds, are the ones which have the highest potential for profit. There are a number of factors which will determine the value of a wine, but one of the most significant is the law of supply and demand. So for instance, a wine which has reached maturity and is highly scored by wine critics will of course be consumed by a lot of wine lovers. As soon as one of these bottles is opened, the value of all of the other bottles of the same wine will increase, as this wine will immediately become a rarer variety.
Another factor which will influence the value of wine is the rating which a professional wine critic gives it. The critic will base the score on things such as the taste, the appearance, the ‘nose’ and the wine’s other characteristics. One of the world’s most famous wine critics, a man named Robert Parker, has been known to have a significant influence on the value of wines, so it’s certainly worth researching his opinion on a particularly wine before making an investment. The ideal scenario for a wine investor is purchasing a wine which has not been assessed by the critics yet, and which later receives a rave review, as then the wine will have been bought for a much lower price than what it can be sold for.