So you want to be a wine investor? The Vino Geek breaks down the basics of investing in wine.
We all know that wine is awesome right? Well what if I told you it’s a valid investment as well. While generally I’m keen to crack open every bottle I get straight away but if you can manage to keep the cork in for a few more years $ signs will start to accumulate.
Unfortunately this isn’t another get rich quick scheme – just think of wine as a commodity. The price of cellared wine will go up and down, and some wines appreciate more than others. So here’s the mugs guide to investing in wine.
1. Pay attention to the experts!
Langtons Classification of Australian wine is an absolute must read for anyone planning on investing in wine. Consider it the ultimate form guide for wine in Australia, outlining those wines that are highly sort after. In the most recent classification released in May this year, the list of Exceptional wines included Penfolds Grange, Henschke’s Hill of Grace & Seppeltsfield 100 Year Old Port. This classification is released every 4/5 years and while it only acts as a guide, it will certainly give any avid wine investor a head start when looking for something that will bring you the moolah from the secondary market.
2. Cellar it Carefully
Just like a small child or your pet, wine doesn’t like being left in a car in the sun with the windows up. Nor does it like an environment that fluctuates in temperature too much. If you’re going to be buying wine and reselling it down the track, the buyer will want to know that it has been treated right and is going to be in just as good, if not better, condition that when you bought it. My suggestion, invest in some professional cellar space through a climate controlled wine cellar – there are plenty about in each capital city in Australia that will check your wine in and keep it on your behalf in a purpose built cellar. Don’t have access to any of these facilities? The next best thing is a wine fridge – this will keep the wine at a constant temperature and stop the wine ageing quicker than it was made to!
3. Stay with the Blue Chip
Very similar to the sharemarket, there are a wines that are safe (blue-chip) and wines that are risky. Dependent on what sort of punt you want to take, you can decide which you want to head. Personally I’d be inclined to purchase a majority of wines you know will give you a good return, with the opportunity to take a punt every now and then. Wines like Penfolds Grange & Bin Series, Wolf Blass Platinum Label & Rockford’s Basket Press Shiraz are always up there.
So there you have it guys – like any investment I’d recommend some professional advice from a wine broker, but who new the fermented grape could earn you some extra cash!
Feature Image via The Wine Czar (Who has an amazing selection of Investment quality wines!)