Why invest in wine?
Whatever your level of knowledge of wine, the benefits of investing in this red gold are often described in press articles or by wine enthusiasts with varying degrees of knowledge of the fine wine market.
In particular, you'll find numerous press articles explaining the benefits of investing in wine, with examples of exceptional capital gains. These articles often compare two auction prices recorded on different dates, and calculate the percentage gain over time.
With over 40 years' experience in the wine business, we can confirm thatinvesting in wine can be a fantastic source of investment, but only if you understand the buying and reselling mechanism, and are also careful.
First of all, it's important to define precisely which wines are worth investing in.
To be able to invest properly in wine, however, you need to identify the huge ecosystem that this market represents (estimated at €13 billion in France in 2019). To begin with, we need to distinguish between wines with ageing potential and a prestigious international reputation: these are the ones that are worth investing in (a small sub-market representing around €2.5 billion in 2022, or less than 10% of the global wine market).
In fact, when we talk aboutinvesting in wine, we're talking about "grands vins", i.e. great vintages, rare wines.
By definition, they are produced in finite, controlled quantities, making them a rare commodity that improves with age. It is therefore a product whose value can only increase over time, making it a relatively safe investment.
What's more, it's a tangible good that you can display in your cellar, and which has the characteristic of being able to be consumed at any time, giving it not only investment value, but also use value.
It's also important to understand how wine is bought and sold.
In conclusion, wine is the ideal investment if you're passionate about great wines, terroir and history. Vin de garde and fine wines are products that can only increase in value, and are produced with this in mind.
However, it's essential to be familiar with the mechanics of this very specific market, and to be patient: wine is a long-term investment.
What are the advantages of investing in wine?
Investing in wine offers a number of advantages, including the possibility of diversifying your wealth by adding a tangible asset to your portfolio. Grand crus and other quality wines can increase in value over time, offering an attractive return. What's more, wine is a way of combining the art of living with a financial investment. Well-chosen bottles can also serve as collector's items.
What are the risks of investing in wine?
Like any investment, wine involves risks. Temperature variations and inadequate storage conditions can affect bottle quality. It's also important to manage market fluctuations, as wine prices can vary according to demand and trends. Good management and professional advice can help mitigate these risks.
How to choose wines for investment?
When investing in wine, it's crucial to choose high-quality bottles, often grands crus renowned for their potential to increase in value. Selection criteria include the reputation of the wine, the reputation of the producer, and the rarity of the bottles. Using a comprehensive guide and consulting industry professionals can help you make informed choices.
What role does storage play in wine investment?
Storage is essential for preserving the quality of investment wines. Ideal conditions include stable temperature, controlled humidity and absence of direct light. Space management in a cellar or the use of specialized conservation services are important to keep bottles in good condition and maximize their value.
What is the potential return on an investment in wine?
The profitability of a wine investment depends on a number of factors, including bottle quality, market conditions and length of ownership. In general, grands crus and rare wines have a higher potential value. By following market trends and reselling at the right time, you can achieve a significant return on your investment. It's a good idea to monitor wine selling prices and regularly evaluate the performance of your investments to optimize profitability.