Wine is a liquid asset, for your senses of taste as well as investing. But one thing you need to know before venturing into this investment option, is that you will not be able to make instant profits. You will start filling up your cellar and will have to wait for a minimum of 5 years before you start selling your collection.
Investing in wine is an alluring option, because even if things do not work out for some reason, you can drink it. Not at all meaning that you should be doing that, but just giving assurance in the worst case scenario.
Let us look at some of the prerequisites for investing in wine, these pointers may positively help you in making more out of your investment.
Wine investment is a long term investing option. You cannot make quick turnarounds in this business. Prepare yourself to wait for 6- 10 years to make good profits on your investment. However, if you want short-term gains you can consider En Premier Wines from Bordeaux.
Professional storage is highly recommended. If you want your wine to have excellent provenance and you want to ensure that it sells, storing it in a temperature controlled facility is very important. Storage options begin from about $18/mo for a locker with a capacity to hold 7-9 cases of wine.
Be ready for an initial investment of $8000 to start. It is always better to start with a sizeable value of such an asset, and when the cost of storage , insurance and selling of wine are including to the procuring cost, it amounts to around $8000. It is highly advisable to insure your wine collection. With all the troubles that you have to go through procuring your valuable assets, you should surely get it insured just in case an earthquake or tornado destroys your collection.
Start by collecting wine which ages tastefully and gracefully and also the wine you collect should be in demand. You can go ahead with fine wines from Bordeaux and Grand Cru Burgundy. If you want to invest in French wines, then make sure they are easy to sell internationally.
When the time to sell comes, you can either sell them through an auction or can even go online wine auctions. Some of the auction houses in the US are:
Acker, Merral and Condit
Spectrum Wine Auctions
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