Why Invest in Wine in 2020?

There are many different investment opportunities in life, however, some offer a much more stable chance of return than others. Wine investment is a practice that finds itself on the more stable side of things thanks to the continued, and not likely to diminish, strong wine market. Purchasing investment wines is something that has gone on for hundreds of years and continues to be a popular activity to this day-some may say it is more popular than ever. Once wine collecting was seen as a bit more of a specialist hobby, a somewhat exotic market, but now it is that bit more mainstream with more people taking the plunge. This is a solid investment area, so if you are looking for something new to invest in as we lead into 2020, it is an excellent option. Even someone who does not have a massive knowledge of the wine industry could soon bring themselves up to speed. A novice building a strong investment portfolio around wine is an easily reachable goal. At the very least, it would be advisable to have a good understanding of how wine vintage and provenance affects the value of a wine bottle.
Of course, you will need to have sufficient funds to invest, but this does not have to be huge amounts, When doing your research on wine investing-and do spend plenty of time doing so-work out a realistic spending budget. Some people will focus on collecting a certain type or vintage of wine only, others will just seek to add whatever they think they can make a substantial return on. It is up to you what approach you take. Another essential consideration in wine investment is storage. You must make sure you have the correct type of space to store your wines-if they get ruined you can not expect a decent return on them. Poor storage can lead to the flavour of the wine being spoiled. If you do not have a suitable space in your own home you may consider paying a fee for a professional wine storage service. As with all areas of business and investment you need to watch out for potential fraud. Some people have set investors up for a fall by creating knock-off versions of big names. The main key to avoiding such a pitfall is to only purchase your wine from limited, trusted sources. Keep to well-established names and avoid any cold callers. Remember you should be able to view all of the necessary paperwork with the bottles that will of tracked their history. In this digital age, we do have a great number of sources for helping us to spot fakes online, so use the internet to your advantage.
Speaking of the internet, The London International Vintners Exchange has been online since 1999 and has become the industry standard for the tracking of wine prices. With this in mind, it is highly recommended that you bookmark that site for all of your investment wine needs. The site also contains the Liv-ex Fine Wine 100 index which charts the top 100 most-sought-after wines, a valuable resource.
Lastly, there is another approach to consider taking to help make sure you are not alone in your wine adventure. Some experts recommend that you hire a manager. For example, a famous small network such as Berry Bros & Rudd or Cult Wines will help you to invest your money wisely, in line with your buying budget and risk level. They can suggest what to buy and track your portfolio. Of course, fees will be payable for such a service, but with the potential return, in the long run, it may well be worth it. Usually, the services will include storage of the wines as a bonus.


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