Remember famous saying: “The main problem of quotes on the internet is that people immediately believe in their authenticity.” So, during the last 24 hours, after the release of “Fine wine returns outperform UK blue-chips and gold” in The Times, I found out which of my friends read The Times and who believed that newspaper articles should be trusted and taken for guidance to action. How did I know? Everything began peacefully with one nice correspondence, but then, the dam burst, and everyone decided to invest in wine.
Here are my three reasons why you should not invest in wine.
- You are not a professional or an investment banker who is fond of wine. This means that wine investments are not for you. Wine investments are no different from any other investments; if you want to work hard, you have to do a lot of work — a lot. Or, rather, you will have a lot to read and study about the wine and financial markets as well as the traffic they see. Why? Because, without this information, brokers would begin to impose on you the most obvious positions that were at their peaks. (It is clear that such positions would be imposed not only on you but on all others.)
To earn a lot, to the sound of ka-ching, one must see positions that are good but not visible to everyone, and for this, you need to do your homework and have an analytical mind. Did you think that after China moved away from the anti-corruption law, they would want to invest again, not in Bordeaux, but in Burgundy? (Now, it’s not even a sin among wine lovers in China that you do not like Bordeaux, as it was a couple of years ago.)
I know a couple of people who predicted this. They knew because they knew their “mathematics” and knew how to add preferences and market experiences (although they were not aware of their investments).
- Wine investment is not bitcoin and not gold. How will you sell it? Do you know how and where to store wine? Do you know which certificates are required? When you buy wine, for sure, you will find out where and how it was stored. Therefore, most likely, you will need a professional store that takes money for it, and that’s about twenty dollars for about 50 bottles.
- How quickly does your investment in wine return? It takes at least five to ten years. No investment in April, having to resell in November. Are you ready to wait five years, or ten? And, most importantly, do you know how much you need to spend to make your wine portfolio realistic and profitable? At least 10,000 dollars! It’s the unfortunate truth. Plus $500 on average for storing wine treasures, not to mention insurance, and most importantly, there is the risk of not being able to sell your stock. If all this did not convince you, and your feet are already running to the bank for a loan, and your hands are scratching to buy wine, here are five positions that, in my opinion, showed excellent growth, and will possibly grow more.
- Screaming Eagle 14
- Petit Mouton 15
- Le Pin 16
- Trotte Vieille 14
- Issan 12