Wine Investment

Once again there have been reports in the British press of small investors losing all their money in the wine investment market.

There are a number of risks associated with investing in wine as there are investing in any other commodity.

Just as prices can go up they can easily come down in both the the long, middle or short term. There is very little that the small investor can do other than watch the market and hope that prices go up. No one can predict the future. Some brand names do better than others so you need the advice of an honest broker. Remember, the higher the potential gain the higher the risk that you will lose some or all of your money.

It is vital that you can trust the people you deal with - buyers and sellers and brokers alike and their promises.

You must make sure that you can trust "cold callers" if you decide to use them. You must perform due diligence on anyone you are trading with.

Your broker must be financially secure and you should verify this.

You must ensure that you have physical possession of your wine, preferably before but at least at the same time that money changes hands. Most of the people who lose all their money and their wine have put their trust in someone who is either dishonest or financially incompetent and then fails to deliver. If you have physical possession of your wine, you decide when to buy or sell and how to protect your investment under good advice.

Some brokers and wine traders might be playing the market with your money. Traders are able to make money out of falling or rising markets but they must take risks to do this. The higher the potential gain the higher the potential loss and it could be your money they are losing even if they are honest traders. You must ensure that the people who you are dealing with are not involved in unusual risk taking with your money or theirs.

You must ensure that your wine is authentic and in good condition before money changes hands.

You must protect your investment from theft and damage etc. and store it in a safe, dark and cool place where the wine can develop in the bottle. A good storage facility will also ensure that your wine is insured.

If you do not follow the advice above you are at serious risk of losing some or all of your money. The commodities markets are risky enough in themselves without adding to it further by using a dishonest or incompetent broker.

http://www.amazon.co.uk/Investing-Wine-For-Profit-ebook/dp/B0084YVIFK