Posted by admin on Jun 27, 2011 in Wine Articles | Comments Off
As an investor, you must be always on the lookout for interesting opportunities to invest your hard earned money and make profit from it. If you love wines and have a passion for collecting them, especially the vintage wines then you must consider the lucrative opportunity of vintage wine investment.
But, when you are planning to take a plunge into vintage wine investment, then there are a few important points that you must keep in your mind. This will help you optimize your benefits and maximize your profits.
You must purchase the wines only from reputable and well established suppliers. This is especially important in the case of the en primeur purchases. When purchasing vintage wine from a wine investment company, you must ensure that you do not pay any commission fee in advance. There are a few companies that are known to charge 25%. Also, beware of those who use the cold call tactics or any kind of strong arm sales tactics.
You must keep your wines in an efficiently managed bonded warehouse. This can be done with the help of an independent account, or through your merchant who guarantees to keep the wines in good condition, as this is really important to maintain the resale value of the wines. This also means that you will have to avoid paying ay VAT or DUTY while re-selling the wine. You must however compare the storage facilities and prices which can vary considerably.
When you are dealing with a wine fund or specialist, the wine investment companies usually look at their track record. It is essential to evaluate how their funds or portfolios have performed historically. Also, you must check what charges and commissions are involved. When you are purchasing separately for a capital return, always stick to the investment grade, red Bordeaux from the top vintage collection.
If you survey the vintage wine investment market, you will find that Bordeaux makes up over 90% of the wine market. So, you must bear in your mind that generally the old vintages offer better investment potential than the more recent vintages. Furthermore, when you are buying wine for investment purpose, you must always compare the prices and do some shopping around. So, rather than buy a large number of cheap cases, it is better to buy a small number of expensive and high value wines. Alternatively, the annual storage charges will further considerably reduce your profits. Click Here To See The Oldest & Finest Vintage Investment!