The Sunday times has been running the “Sunday Times Wine Club” for quite some time now, for the savvy investor it is a wealth of information about new trends in the wine market and can be used to tern a profit for both long term and short term investments in wine. If you’re new to investing in wine, then it is best to stick with the Bordeaux wines as this counts for up to 90% of the investor market, and has more liquidity if you where to decide to cash in your investment.
The minimum time frame people usually look at investing in fine wines is 1 year though 5 years is considered the maximum about of time for a long term investment, you can see returns of up to 30% a year from your portfolio.
Before investing in any wine it is best to get expert advice on what wines are likely to make high yielding investments, any wholesale wine merchant that supplies for the investment market should have a good idea on what’s hot at the moment but a bit of knowledge yourself can never hurt.
Wine is certainly less volatile than the stock market, and has out performed the FTSE 100 for three consecutive decades with lack of interest form investment bankers and hedge funds due to the small size of the wine market this has allowed it to remain open for normal investors to profit from.
Wine has become increasingly popular in the alternative investment market and continues to grow, the main reason is that there is solid demand for the product outside the investor market which means the prices are help purely from speculation like you may find with stocks and shares.