These wines increase in value over time
Logically, an investment in wine is only worthwhile if it increases in value over time. Since price increases are usually associated with an aging process, older and therefore longer-matured wines are of higher quality – a rule of thumb that only applies to wines that are also suitable for aging and have also been stored correctly. Those interested in wine should therefore have a good knack for finding suitable candidates and then increasing their value through appropriate storage. But how can beginners tell if a wine will age well?
An article in Fortune magazine gives an introduction to the aging potential of wines: According to this, bottles that are a little more expensive to buy than other representatives of their variety are well suited. A 100-euro bottle from a well-known winery is said to have better prospects for a long-term increase in value than cheaper products whose origin is less prestigious. A second important aspect is the classification of the wine. If the vintage is rated as particularly good, the potential for successful aging is greater. Investors should therefore be on the lookout for products from well-rated vintages in order to buy appropriate bottles early and then store them themselves.
However, besides these two rather superficial characteristics, there are also certain factors that can affect a wine’s characteristics and thereby qualify it as a good candidate for aging. According to Fortune, four parameters are important: the residual sugar, the alcohol content, the acidity and the tannins. All four values change during aging and determine the subsequent taste. If a wine develops a good balance between all these influencing factors over time, it is of higher quality and therefore more expensive to sell. Strains that have high concentrations of all values, such as Vintage Port, are very long-lived and lend themselves well to aging, according to Fortune. Before making an investment, you should definitely find out about the properties of the wine in order to find out whether their interaction allows for long storage.
Proper storage is key
The right selection of wines is usually only half the battle for a successful investment. In order for the purchases to turn into real profit makers, the bottles must be stored carefully and under the best possible conditions – for years or even decades. Only in this way does aging progress to the desired extent and transform the wine into an even more noble drop. The German Wine Institute recommends storage in a cool, damp and dark cellar that is vibration-free and odorless. The optimal average temperature in the vault should be between 10 and 12°C. If you don’t have this option but still want to store your wine under appropriate conditions, you can buy a special wine storage cabinet. If you don’t have a cellar or a fridge, you can store the wine in a cupboard or under your bed. If there is really no place to be found within your own four walls, there are appropriate service providers who can take over the storage on behalf of you.
Under no circumstances should red wine be stored in an ordinary refrigerator for a long period of time. Jean Frederic Hugel, a 13th-generation Alsatian winery owner, told Fortune that a wine cabinet and a refrigerator are two completely different devices: “A refrigerator is designed to store perishable goods; even the mildest setting is far too cold for wine aging, or even for the… Wine care, except for white wines of course. Your wine just won’t age in a fridge”. In addition, conventional refrigerators emit noticeable vibrations during cooling, which set the wine in motion and “stir it up”. However, an overexposed storage location with high temperature fluctuations is even worse than an environment that is too cool and prone to vibration. Therefore, a wine rack should never be placed near heat sources and direct sunlight.
Avoid mistakes when buying wine
As with other investments, there are of course certain mistakes when buying wine that must be avoided at all costs. The purchase should generally only be made from reputable and trustworthy providers. If you only accept bottles from well-known wineries and dealers, you are on the safe side as far as their previous storage is concerned. Under no circumstances should you buy so-called “cellar finds” or products without labels or with illegible labels. In this case it is uncertain whether the content is really what is mentioned in the offer. Furthermore, the news portal Welt recommends paying attention to the capsule, the cork and the filling level when purchasing. The latter should be at the end of the neck of the bottle and not at the shoulder. New corkage would also indicate a responsible winemaker. If you want to be on the safe side, you should definitely listen to the reviews of wine critic Robert Parker, whose reviews are highly regarded in the wine world.
Alternative wine investment opportunities
If you want to invest your money in wine, you don’t have to fill your cellar with countless bottles. In addition to the “traditional purchase”, there are other forms of investment that can be used as an alternative. In an article on the Internet portal Das Investment, different investment options are presented: For example, there are certain funds that specialize in investments in wineries and vineyards. By purchasing appropriate fund shares, you can invest money in a diversified manner and generate a return on wine growing.
Another, somewhat unusual way of investing in wine are so-called participation certificates, which are issued by various winegrowers. According to Das Investment, buyers of such securities should not receive the usual interest, but rather interest in kind in the form of wine bottles.
Last but not least, with the “London International Vintners Exchange”, Liv-ex for short, wines have their own electronic trading platform and various indices. Wine can be traded and money invested on the stock exchange. However, the basic parameters for a successful investment also apply here. Investors should understand the territory of their investments and be aware that economic downturns can also reduce demand for expensive wine.
Editorial office finanzen.net
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