How to Invest in Wine
Investing in wine can not only result in you earning a lot of money but can also diversify your portfolio.
If you’re a lover of wine, investing in wine can further your knowledge of wine as well as enable you to earn money from your passion – which is something many people wish they can do.
Fine wine is also known for having a low correlation with the global stock market, making it a great investment opportunity.
In fact, the wine investment market has outperformed many global equities as well as ETFs (exchange-traded funds).
It’s a much more stable market than silver, gold and even real estate, and has delivered 13.6% annualised returns in the past 15 years.
Therefore, it’s a great way to manage portfolio risk and counter any volatility.
Which Wine Should I Invest In?
Before you commit to any investments, it’s important that you know exactly what to invest in – what is worth investing in, and what will earn a profit.
Investment-grade wine is typically fine wine that will likely increase in value after 5 years or so.
When looking for wines to invest in, be sure to check whether the wine will get better with age. Some wines may not taste better with age, and therefore won’t be suitable for investing in.
However, wines that have the perfect mix of flavour, alcohol, acidity, and tannins will increase in value over time and are therefore a perfect investment opportunity.
It will also be beneficial to look for limited edition or rare wine.
Although these are more expensive, you’re likely to accumulate a much larger profit from limited edition investment-grade wine than wine anybody can purchase from the local supermarket.
Be sure to look for wines that are still in the barrel – this will give you dibs on new vintage wine.
See the links below for our top tips on wines to invest in in 2022