Fine wine is an investment market for high net worth individuals. Those who can buy when demand is low and only sell when their investment reaches an optimum return.
When many investors first hear about wine as an investment, often their first reaction is ‘I don’t know anything about wine!’ However, they likely know more about wine investing than they think...
Here are some facts:
- Not all wine makes a good investment. Only select FINE wines from certain vintages.
- Fine wine improves with age and many require 10-50+ years of bottle age to reach their optimum drinking windows.
- The market is dominated by a huge demand for a handful of wines produced by less than 30 Bordeaux châteaux.
- Fine Wine is produced in limited quantities. For example, Château Pétrus normally produces less than 3,000 cases annually, while Ernst & Julio Gallo produce around 60 million cases per year.’
- Vintages vary in quality and quantity due to human and natural factors, and market prices fluctuate accordingly.
- Demand increases with bottle age.
- Supply decreases over time.
- Availability of wines from each vintage diminishes as they are consumed.
So, if the demand for a wine increases over time and over that period the supply decreases, what do you think will happen to the market price? And you didn’t think you knew anything about wine investment.
Please follow this link to Opportunities in Fine Wine