If you’re investing in wine for both pleasure and potential return, keep in mind that not every wine is a good investment with the potential to increase in value. As you look for wines to buy, try following these simple tips:
Out of over 2 million wine producers, only about 500 make what would be truly considered investment quality wines. Any wine that has potential investment value will start at around $100 per bottle. Purchase wines from the big regions with well-known producers, but also consider wines from growing regions to find values. Wine is meant to be enjoyed, so beyond the big wines, buy wines you enjoy and explore wines that you may not typically purchase.
Always buy fine and rare wines from sources that are well-known with a good reputation. Sites like Wine Searcher offer insight into retailers and aggregate offers on wines to find the best deals. While auctions are another way to buy wine (including through Australian sites such as Langton's), remember that they can charge the buyer from 15-25% on top of the bid. Using sites like Wine Market Journal and Wine-Searcher can help you determine your maximum bid and ensure a good deal.
If you’re actively drinking wine and looking for potential returns, you may want to consider accumulating wine in a 3-tiered cellar approach.
When purchasing wine, consider buying in case quantities (which could include 3, 6, or 12 bottles), keep the bottles in the cases, and purchase an extra bottle or two of each, so you can enjoy it yourself and see how the wine is aging. Keeping the wine in the cases will help add value, as most buyers want the wine in its original case. If you buy in large quantities, make sure you understand the drinking window, so you can either drink or sell the wine while it is mature and not past its peak.
Wines in France are often part of the en primeur system or futures. These wines have been harvested and put in cask to age, and negociants sell with the knowledge that the wines will not be shipped for at least two years. Purchasing wine futures takes patience and research to ensure that you understand the producer, history of pricing, and the potential quality of the vintage.
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