Wine as an investment

Reading yesterday’s Sunday Telegraph I came across this article on wine as an investment. If you’re thinking about it I’d seriously urge you to have a read.

Despite being in the trade, I’d be extremely wary about putting much money in to wine solely for investment – it’s just too unpredictable. And unless you can afford to drink £50-100+ bottles of wine on a very regular basis, the idea of opening bottles if your investment goes south doesn’t really hold water.

One rarely sees the ‘dark side’ of wine investment but do beware – I’ve recently dealt with clients who’ve bought ‘portfolios’ for multiple hundreds of thousands of pounds – only to find they’re almost impossible to resell, even at 20% of their original purchase price. Add in storage charges of £12 a case per year and the results are even more painful.

So if you’re thinking of dabbling then pull a cork, pour a glass and ask yourself who’s going to buy your wine in the future and whether you really have an appetite for huge potential losses. It’s easy to see wine as an abstract concept but when you see a warehouse full of Chateau Latour 2010 one realises that in the end, someone’s got to want pay to drink it..!

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One Response to “Wine as an investment”

  1. Imbiber3 Says:

    I agree completely. If it was that easy then anyone with little or no experience of wine would be making money. All investments like this are speculative and as such you need to know your own limits. I always take the view that unlike other investments if it goes wrong then I can always drink it. I however do not do it to make money rather I try to buy early so I don’t have to pay more later. That poses a reflective view on buying early but maybe that’s for another time.

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