Wine investment is one of the best investments out there. Occasionally stories emerge from wine lovers who collected wine in the 90s at a price of about $40 to $80 and are now selling their wine for thousands of dollars. Though it’s a more delicate investment, the best wine investment can be better than investing in stocks.
When making a decision to invest in wine, there are certain factors to be considered such as collecting the best wine, storage, budget, state regulation and insurance. For more insight on these factors, keep on reading.
What is the sole purpose of investing?
Before taking the first step to investing in wine, you need to figure out the sole purpose of it. Are you investing in wine because you love it and want to make money off it in the process or are you investing only for the purpose of making money? If it’s the former then it’s advisable you collect the type of wine you enjoy drinking so that you can also enjoy your wine in the investment process. For the latter, you simply have to invest in the best wine which will give you optimum returns years after.
Get a proper wine storage
Wine takes years to reach full maturity so it is important that you have the right storage to keep it protected. A wine storage must have racks to stop wine from falling and breaking. A room that’s too hot or too cold could also do damage to the wine. The best option for wine storage is a dark room with optimal temperature like a basement. If you don’t have proper storage facilities, you can contact local wine storage facilities.
Collect wine based on your budget
When collecting wine, it is important that you search for the best wine within your budget. Experts have suggested that for making investments for your first sets of bottles, a sum of $10,000 should be set aside. Your budget should also include the cost of insurance and storage facility for the wine. Note that wine investments come with a risk so you should be financially capable of losing this $10,000.
Find out state regulations on wine
Before investing in wine, it is important that you find out all the wine regulations in your state. This is because some states do not allow purchasing wine from outside the state either via the internet or from retailer. This could limit your options to only wine provided from your regional wholesalers. Finding out state regulation helps you find ways to get the best wine despite these regulations.
Insure your wine
Wine investment involves storing up wine for a period of 5 to 10 years so insuring your wine is important. To insure your wine, you need to get a home insurance company. If you reside in areas which experience natural disasters, ensure your insurance policy includes effects from these disasters. Ensure you compare wine insurance prices from other carriers.
Wine investment has its risk, but what investment doesn’t? Investing in the best wine will give you amazing returns in the future!