Invest in Wine that is Well Researched by Experts
Industry experts are available to you through most wine investment platforms. Having a team on your side that has conducted the proper market research can greatly influence your success when it comes to navigating market trends and practices related to wine. These industry titans do the research on age, quality, and popularity so you don’t have to. If you aren’t a sommelier yourself, relying on the well-researched collections of professionals can be a great place to start.
Invest in Wine that is Investment Grade
Investment grade wine can be defined as wine that is capable of aging and improving over time. It should be produced in limited volumes. Investment grade wine is also considered to be a wine that is made by a reputable source producer. When you are looking into investing in wine, make sure that it falls under these three qualities as a minimum.
Invest in Wine that is Equitably Sourced
Sourcing is another aspect of wine investment that you should have incredibly high standards with as it can dramatically impact the integrity and worth of your collection. Luckily, many wine investment platforms do the research and grunt work for you. They work with merchants, negociants, producers, and auction houses directly. These direct relationships can help your collection be the best asset it can be.
Invest in Wine from Quality Producers and Regions
Two of the most important questions you can ask yourself when investing in wine are “who made it?” and “where is it from?” The wine of top producers has higher prices. Noting what cult wine followings are out there, and attributing which credible wine producers are in the mix can dramatically impact the demand for that product. Furthermore, there are certain wine-growing regions of the world that are in high demand around the world just based on the region alone. Investing in wines with a regional reputation can also be important when building your collection.
Invest in Wine that has SEC Qualification
The Securities and Exchange Commission is a governmental body that regulates securities and protects investors. The SEC is important in that it helps protect you as the investor from fraudulent investment opportunities and market manipulations. Luckily, many wine investment platforms work to qualify as a Regulation A classification. This classification helps secure the ownership of collections in the form of shares. It also helps investors be able to trust the legitimacy of the assets that the platform sources through full transparency.
Invest in Wine that is Decreasing in Supply but Increasing in Quality
Fine wine’s worth increases as time passes. Due to the fact that it is a consumable good, it is important to note that wine is often drunk when it is at its prime in the aging process. This means that during its peak age, quantity is decreasing steadily but the quality is at its peak making it a valuable asset. Demand and value growth are essential to a consumable good.
Invest in Wine that has High Critic Ratings
Wine critics all around the world are continually giving different wine evaluations and critiques. These scores have an enormous impact on the wine’s demand on the markers. A wine that has received a score of a hundred points by top critics is considered trophies among collectors and can increase the price significantly.
Invest in Wine that has been Stored in Excellent Condition
Provenance refers to the storage and ownership history of each wine released by a producer. As you can imagine, a quality wine investor is going to look into provenance and ask two questions before deciding to add a wine to their collection. These questions are “where has the wine been stored?” and “what is the wine’s condition?” This is where having trusted sourcing partners is absolutely crucial in this investment journey.
Invest in Wine that is Vintage
Age is everything with wine. As we spoke about above, investment-grade wine must be capable of improving and aging over time. Distillation years give the buyer information on the maturity and value of the wine. The year the wine was produced is crucial to any collector as it can indicate the weather from that season along with the quality and quantity of that specific label. Knowing the details of the aging process along with when it is predicted to be in its prime time for consumption is important to the wine investment process.
Invest in Wine that is Priced Well
As any fair market research goes, it is important to understand market value. This knowledge requires significant background in global and local data. Comparison of products happens on every level from the analysis of the producer to age to potential price in the future. This can all seem very overwhelming to someone who is a novice in this field. Thankfully, there are trustworthy wine investment platforms that make it easy by doing all the research for you.
