Is it profitable to invest in wine?

Wine as an investment

In times when extremely low interest rates are paid on the financial market, especially for very safe forms of investment, numerous investors are looking for them more profitable alternatives. In the foreground are then above all so-called Tangible assets, such as real estate or precious metals.

There are also many other tangible assets in which investors have been investing for many years. In addition to jewelry, art paintings or vintage cars, the one in particular also belongs Wine to this special investmentsso that investors hope to be able to achieve a good return in the long run. Unlike many other tangible assets, there is a Investment in wine Naturally no annual returnbut a possible profit arises from that Purchase and subsequent sale of the wine. As a classic capital investment in the field of wines, Bordeaux is considered above all, but other grape varieties are now very popular as investments.

Development and current situation in investing in wine

The Investment in wine is certainly mainly for real asset-oriented investors More and more popular, because the Prices over the past two decades partly increased significantly are. In particular, those that are considered to be very durable Top wines could one significant price increase achieve.

Compared to fixed income securities have Investors investing in wine in the past have seen significantly higher increases in value reachable. Sometimes the development of the values ​​was even better than that of stocks, so that investors converted one Returns of sometimes over ten percent per year could achieve. The development and current situation also show that it is by no means just wine drinkers who are interested in an investment. Instead, there are numerous investors who do not drink wine themselves, but simply view the noble drink as a pure investment.

Experts believe that wine also in the coming years to the tangible assets which on the one hand require extensive specialist knowledge from the investor, but on the other hand nonetheless relatively valuable will be. Thus, the future development of wine as a worthwhile investment in kind mostly rated positively.

Return prospects for wine

The investment in wine is certainly not for customers suitable for years to come with a fixed rate of return want to calculate. Instead, when it comes to investing in wine, it is impossible to predict how prices will develop. True are Increases in value with the top wines relatively likely, however, even experts cannot say with certainty how high the price increases will be.

With the Bordeaux and Château Mouton-Rothschild wines in particular, it has been the case in the past that the value increases in the first two years after the release increased by more than 100 percent Has. Such enormous increases in value are neither the order of the day nor do they apply to every top wine. This leads, among other things, to Investors should be very familiar with this area. In addition, the investor must know, for example, that large bottles and wooden boxes that have not yet been opened have a high potential for appreciation, while with damaged labels, discounts are to be expected.

Advantages and Risks of Investing in Wine

In addition to the factors mentioned, the price development for top wines also depends to a large extent on the Judgment of the respective professionals (Wine journalists). This fact is certainly one of the risks of investing in wine, because investors can often not foresee how the opinion of the important specialist journalists will turn out.

So there is greatest risk in wine capital investment in the fact that the investor decides on a wine that is ultimately “badly written” by the specialist journalists, so that no major increases in value are to be expected. So it is getting bigger in part "Influence" from outside taken when it comes to the quality of wines.

The great Advantage of investing in wine is first of all that it is a classic tangible asset. This means that the Performance almost completely independent of which is how the inflation rate developed. In addition, of course, there is also one Independence from the development of the stock market and interest rates in general. Those who are well versed in wines can benefit from above-average returns in some cases, so that wine can often be a profitable form of investment. Particularly with a longer investment horizon, which sometimes extends over decades, top wines can realize considerable increases in value of several hundred percent.

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Oliver is the financial editor for Oliver has many years of experience as an investment banker and is also a freelance writer for several major financial magazines and blogs.