It may sound like a lot of fun but fine wines offer a genuine alternative investment opportunity.
Here we are talking about buying wine to later sell on, rather than to drink yourself although the tips
below apply equally to anyone wishing to stock up their cellar with fine wines!
You could invest as little as £3,000 although many serious investors will invest much more.
Several wine merchants and brokers offer investment services. A broker will advise on which wine to invest
in, and, when appropriate, help you to sell it.
As always, do shop around before selecting your merchant or broker. In particular check the commission
you will be charged.
Which Wine?
It is probably best to invest in a small quantity of quality wines. Old world wines, such as those from
France, may be a better bet than the New World.
Many investors buy wine en primeur – when the wine is still in the cask and can be purchased at
new release prices.
Alternatively buy wine from a proven vintage. Buying wine from a good year rather than the name on the
label is the basic rule.
After Buying Your Wine
Although the idea of storing your wine in your own cellar sounds romantic it is usually advisable to store
it under bond avoiding payment of VAT or duty. Your broker should advise you on this. Profits from fine
wines are free of capital gains tax so making the investment even more attractive and profitable.
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