Photo by Thomas Thompson

Originally Posted On: https://cablewinesystems.com/wine-investment/

Wine investment can lead to excellent positive returns especially if you’re focusing on investing in fine wine.
These days, it seems that no amount of work brings in as much result in monetary factors as we expect, hence, optimism isn’t a favourable feature especially when dealing with 9-5s.
The money we get from our jobs and businesses are quickly factored into daily needs and that of our dependents that there is hardly anything left for us to really enjoy after spending on necessities. The bad thing is that our economic realities fail to put a stop to our fantasies. We still dream of that lovely vacation with our families, and we still want to own that beautiful home in that choice area, with all the luxury that can come with it.
It’s frustrating to have so many fantasies in our heads and not have the means to bring them to reality. You probably have tried saving your way to riches, and by now you know that no one gets rich by saving.
Luckily, there is indeed a way to bring your dreams to reality. You too can go on that dream vacation and do whatever it has that you have been constrained to do just by investing. Now it gets better. You are not only investing, but you’re also investing in something that we love (and we know you love too) – wine!!!
The importance of investing cannot be overemphasized.  Investing helps you attain financial security for the future, when you invest, you’re not just sticking your money in one place. By investing, your money works for you and increases as time passes. Knowing how to invest wisely is an important skill that everyone should learn. Investing in wines specifically, would give you maximum satisfaction and make you smile to the bank more often than you think is possible.

Why Invest in Wines

You should invest in quality wine for the following reasons:

• Demand: Have you ever been to a party where wines were not served? The answer is most likely no. Everyone loves some quality wine. Wines tend to go with almost any food combination and are used in almost every occasion and celebration.

The demand for quality wine increases by the day, and so you don’t need to be scared that one day, wines would go extinct or would no longer be in demand. Don’t worry, investing in fine wine is a very healthy decision and is low-risk. Wines can be assets and therefore, they can continually yield good returns.

• Profitable: Fine wines are not cheap, neither do they yield low income. Wines are very profitable and the more profitable a venture is, the better for your investment.
• Longevity: Wines are non-perishable goods, this makes them very good for investments. This singular factor eliminates the probability of losing your investment because someone forgot to close a fridge or fasten a bolt.

Some wine actually increases in quality as time passes and this is great news for your wine investment. Since wine becomes more valuable as time passes, it only makes sense to invest in wine rather than most other goods which tend to depreciate in value as time goes on. What is better than this really?

• Knowledge: Investing in wine would avail you better knowledge as to what quality wine entails, and would make you a consultant in the field. No knowledge is wasted and that includes knowledge of wine.
• Tax-Free: We know how taxes tend to frustrate investments. Wines are not included in taxable income as they are regarded as a wasting asset. This signifies great profit margins for your investment.
• Ease: Wine investments may seem like a risky venture, but they are actually very easy to invest in. Knowledge abounds everywhere on the internet, you can easily make research and find answers to anything you wish to know about investing in wines. Experts in the field are always ready to attend to your needs and concerns.
• Pleasure: It’s great to invest and even greater to invest in something you love. Investing in something you love gives you greater pleasure and satisfaction.
• Value: You’re offering value to a lot of people and using your money to improve the lot of others while also improving yours. This is something that should make you proud.

Investing in Wines: Factors to Consider

What factors should you look into when considering your decision in investing in quality wine? We have listed them out for you below:

• How much you know about wine: You should have at the very least some knowledge of wine before you decide to invest in them, but it’s okay if you don’t. You can easily make enquires from experts and conduct your own research within a short period. Just make sure you do this before you decide to invest because it will be difficult investing in something you do not understand.
• Cost: Consider how much you’re willing to invest in the wine business to know if it’s enough to bring you the desired returns on the long run before you finally make the decision to invest.
• Proper Storage: You already know that older wines give greater value as time passes. A good wine storage system, however, is what guarantees that. Make sure that you count the costs properly, and that you have good storage equipment like CABLE WINE SYSTEMS‘ luxury cable wine racking in a bid to ensure the best of your investment in wine.

The Best Wine to Invest in:

Wine is valuable when it possesses good quality.  Research on which types of wine have made huge profits and are leading in profit margins in the industry, make sure to meet with a valuer to get the real value of your wine and analyze how fast it will sell.
Some wines such as Bello Red, Gaja, Opus one, Figeac, Du Pape, etc have been known to be good wine investments for some time.

How to Invest in Wine

When it comes to deciding on how to invest in wine, there are several options from buying and selling wine to investing in wine stocks to making a vineyard investment.  We’ll get more in-depth on each of these how to invest in wine options below.

Buying and Selling Wine

In buying wine, you should make sure that you get the best quality of wine at the fairest price possible. You would have to carry out a series of market surveys to achieve this. Make sure to buy from trusted manufacturers too. Ask for advice from trusted experts first on how best to go about buying and be sure to constantly improve your negotiation skills.
In selling wine, make sure there is a ready market for the type of wine you’re selling. Some types of wine sell better in specific locations. Know your market needs and adapt the sales of your wine to suit them. With the help of your broker, monitor the stock market and know when it is best and most profitable to sell your wine.

Investing in Wine-Stocks

Study the wine market effectively such that you have an idea of some of the top wine companies to invest in. Again, don’t do this without advice from financial experts.

Are Vineyards a Good Investment?

Grapes are the most common fruit used in the production of quality wine. Vineyards refer to the plantation of grapevines. Investing in vineyards is one of the best decisions to make when it comes to wine investments for the following reasons:

• Maximization of wealth: Owning your own vineyard helps you to make more profit in the long run. You also become a major shareholder in the wine industry by being able to control the processes of production and distribution of wine.
• It attracts investors: Owning your own vineyard also attracts investors, thereby giving you an opportunity to grow quicker than your projected expectations.

Employer of labour: It brings a great deal of satisfaction knowing that you own your business, you produce something of value to the public, and you help the society at large by providing employment and livelihood for people.