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Diversifying your investment portfolio with wine

It is my considered opinion that investing in wine should only be pursued if you have a passion for wine and enjoy sharing it with family and friends. Much like art, and the fact that art appeals to a variety of sectors each possessing widely differing tastes, inclinations, and personalities, wine itself is similarly varied and for the most part, what you will find wonderful about the wine you choose to appreciate is for the most part subjective. wine returnsThis is a fact that can make it difficult for wine investors to forecast a return on their investment. So the best advice is to learn what you like and why you like it, then to invest in what you like, whether your inclination is to favor a rich and bold Cabernet Sauvignon, or a sophisticated and intriguing Pinot Noir. In other words, the principle to put into play at the very beginning of your wine investment journey is to invest in wine that you would not mind drinking yourself. 

If you are serious about wine investing for profit, then educate yourself! Do your own research and then share your observations and opinions with other wine investors and wine appraisers. Be goal specific:wine investment-471071 What are you trying to achieve? What kind of return on your investment do you hope to achieve? Large and long-term? Or modest and short-term?Some say that if you are looking for a large return on your investment in wine then you should give serious consideration to purchasing well-known vintages that have received high scores from wine critics. Tip: When it comes to “wine-scoring,” the famed Robert Parker has been the go-to expert for more than 30 years. Investment-grade wine can be seen as a commodity that has a reasonable chance of appreciating in value over the medium-to long-termtypically at least five years. Scores above 95 are considered investment grade but you’ll soon come to see that the greatest appreciation in value occurs for wines that have achieved a perfect score of 100. 

Wine provenance, storage, tax, costs of acquisition and re-sale are all factors that need to be considered and planned for in advance in order to obtain the wine investor’s ultimate goal. Only 1% of wine production makes the cut for investment quality wine. Even at 1% that number is large. Every year over 34 billion bottles of wine are produced! Thus there are over 300 million bottles of wine that would make the investment grade cut. wineinvesting

Like other alternative assets, wine is only worth what someone is willing to pay to acquire it.  Renowned critics can influence the value of the wine investment. A poor review and subsequent reduced scoring can cause the price of that vintage to plummet. The five-year appreciation with respect to the year 2000 vintage (since release) provides an example of the gains that can be realized with other good vintages.

If you are interested in learning more about wine investing, simply contact us and send us your question. We will do our best to respond. 

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What’s more Fun?!?!?

 

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What’s more fun, investing in more tech stock or investing in luscious wine.... easy answer.... WINE!!! wine bullThe alluring prospect of physically tasting one’s investment just about outweighs most anything for me. Here is a key thing to think about…. the available quantity of fine wines continues to shrink day by day, and as history has revealed, in a weak or strong economy, people will continue to drink!

Fine wine is an art, a delicious, consumable, piece of art. A work of art that is worthy of enjoyment by your intimate friends and yourself. Or perhaps wine is a work of art that is worthy of cashing in for a sizable monetary investment gain.

If what you are looking for is wine as a tradable commodity, then what type of collector are you? How do you go about collecting? How do you begin? Here is where the practical collector meets the technical collector.

Practical Casual Collector ⎯bigstock-Coins-In-A-Wine-Glass-9866161 these are the collectors who learn about wine through friends, through weekend trips to various wine countries, and then, as years pass, realize that they love wine; the palate has matured and one’s enjoyment has therefore become more refined. The majority of collectors are practical, casual collectors ⎯ fantastic! But where does one go from here?Understanding the class of wines is of foremost importance, so here come the “IGWs,” defined as investment grade wines. The best place to start is by honing in on what type of wines are investment grade wines. Hint: Bordeauxs and California cult wines are the most in-demand wines for financial return.

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Liquid Assets

LIQUID ASSETS- WINE BUYING FOR YOUR DRINKING ENJOYMENT & INVESTMENT PROFITS!

Previously, I was the co-owner and wine buyer for Monterey Liquors in San Jose, CA. At that time in 1982, I had a customer who wanted to buy Bordeaux Futures as an investment.  For his engineering company, he had volunteered for a special six month assignment in Saudi Arabia in which he was promised special bonuses for this special assignment.  Wisely, he decided to invest some ofhis bonus money in 1982 Bordeaux

Futures, but he asked me which ones he should buy. Wine  InvestingTo start off the research, I asked all my wine sales representatives to provide me some written information on the tasting notes on the 1982 Bordeaux Futures that they had available for sale. By reading the Barrel Tasting Notes on several of the offerings, my customer and I decided on the following Bordeaux Futures:

1) 1982 Chateau Mouton Rothchild

2) 1982 Chateau Pichon LaLande

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