Investing in Wine

There was an article in the press recently about Wine Investors being defrauded of their money. Before making any investment it is essential to establish the bona fide of any wine investment company that you deal with. Not only should they be scrupulously honest with looking after your money, they must also be also be able to give you objective advice about what wines to buy and the market conditions. They should also be able to give you sound advice about where to keep your wine and insurance etc.

If you decide to take their advice but buy the wine and store it yourself you must ensure that the wine you are buying is the genuine article and that you are able to store the wine under optimal and certifiable conditions.

You will also need to make sure that you will always be able to hold on to the ownership of your wine.

If you invest in a wine fund, where you may not hold the ownership or title of your wine, it is of the utmost importance to ensure that the company you are investing with is both completely honest and that it is financially stable and strong enough to withstand changes to financial and economic conditions. Ask them to show you proof of their financial strength. Ask an accountant to look at the figures they provide. If the fund manager is either dishonest or financially unstable or both then you will probably lose everything. You will not even get the opportunity to drink the wine you have lost money on.

Try to learn as much as possible about wine in general and the best wines to invest in. Basically it comes down to the top wines of Bordeaux, Burgundy and Champagne. Some of the finest estate bottled wines of Australia, The USA, Italy, Spain and the Rhone have investment potential; but there are not many of these and fashions can change rapidly.


If you are a newcomer it is best to invest with a well established and reputable company whose bona fide is well established and beyond reproach.

Here are some questions to ask yourself:


Are the people I am dealing with honest and reputable? This is probably the most important question to ask yourself.
How much can I afford to lose if everything goes wrong?
Do I really understand the principles of risk?
Do I really understand that with a higher potential gain there is a higher risk of losing some or all of my money?
Am I really certain that the wine I am buying is genuine and has been stored under the best conditions?
Is the sales pitch believable?
What is the expected return on investment compared to other assets such as stocks and shares, property, paintings etc.?
Will I be tempted to drink my investment?

If you are uncertain of the answers to these questions then think twice.


Here are some questions to ask your wine merchant or investment company:

Why invest with your company?
How strong and safe is your company?
With all other assets it appears that the higher the gain the higher the risk: is this true of wine investment?
What is the market risk compared to other assets including stocks and shares or property etc.?
What return on investment should I expect to see over five years, ten years and forward?
What is the expected return on investment compared to other assets such as stocks and shares, property, paintings etc.
What is the maximum length of time, I should hold on to a particular wine?
Is it best to invest long term?
How can I guarantee that the wine I buy is in top condition?
How can I guarantee that the wine that I buy remains in top condition?
How can I guarantee that the wine is authentic?
Is it wise to have a diverse portfolio or just to invest in prestige French wines?
What wine is the best investment?
Do you recommend New World wines?
Do you recommend Italian wines?
What are the merits of Bordeaux wines versus Champagne or Burgundy?
There was a recent slump in wine prices, how will this affect future prices?
When there is slump in prices, how easy is it to liquidate the investment?
When prices start to fall, is it best to hold onto the investment in expectation of a market recovery?
Where is the best place to find out information regarding prices and valuations?
What costs will I incur including commission and storage costs and when will those costs be applied?

If they cannot give you satisfactory answers to these questions then think twice. If you are still uncertain and have a some money leftover just buy yourself a good bottle drink it, enjoy it and compare it with less costly wines.