Buying a fine wine can be a complicated process, however, there are certain things you need to take into consideration whether you are buying the wine for yourself to consume, as an investment or a gift. Let’s look at why you would buy fine wine and the process of doing so.
Why Would You Buy A Fine Wine?
As An Investment
Many people buy fine wine as an investment and fine wine can rise in price, but it’s important to note that it can also go down as with any investment. Only invest what you can afford to lose or what you can afford to drink! Shop around to find the best price for your wine and if in doubt go to a fine wine boutique that will give you reassurance – more of that later. It’s often said that wine is a medium to long term investment, so think of investing for at least 5 years. This will help you take the knocks of the fluctuations in the market and still give you a good return. Fine wine investments are advertised as ‘tax-free’ so be sure to speak to a tax advisor for help with this.
For The Flavour
Pricier wines often taste better than cheap wines, and that’s a fact. Cheaper wines are often blended wines from different smaller regions, e.g. California, using cheaper grapes with machine harvesting and minimal ageing. It may also have residual sugar to add richness and hide the fact that the grape is lower quality. More expensive wines are from a specific region e.g. Napa Valley, using premium wine grapes, are hand-harvested so the grapes picked are better quality, ripe and not rotten and are aged longer. More expensive wine doesn’t have the residual sugar. So as you can see a more expensive wine will generally be better quality and taste better.
As A Gift
A fine wine can be bought as a gift, for a special occasion. Buying a bottle of champagne for your child to open on his or her 18th or 21st birthday, fine wine for your husband’s retirement date or special wine for an anniversary can be a thoughtful touch. Buying a fine wine as a gift does have its challenges, however as you need to think about the person you are buying it for, and the flavour profile they like to drink. When in doubt settle for a bottle of good quality Champagne, but Champagne is generally one wine that shouldn’t be kept long-term as the general consensus is that it does not get better with age, unless its a specific vintage.
The Process Of Buying A Fine Wine
So whether you are buying a fine wine for the investment, for the flavour or as a gift there are certain things you need to think about.
Firstly, it’s important you source your wine from a reputable vineyard, fine wine dealer or wine boutique, like The Beauty & The Taste that have access to iconic and niche winemakers based on quality. This will help you protect your investment. A fine wine boutique allows you to buy luxury wine with no minimum order unlike many vineyards and have a range of quality hand-selected wines to take the guesswork out for you.
What You Know
If you like a certain type of wine, it’s best to stick to something you know. Think about investing is a more expensive version of the style of wine you like. This will keep you in your comfort zone and avoid any surprises especially if you are keeping the wine to enjoy yourself. If you like California whites, for example, a French red may not be to your taste, so don’t invest it in unless you are purely investing in the wine to make money.
Do Your Research
There is a lot of information out there so do your research, whether that is with books, speaking to wine sellers or by using the Internet. Some background reading on the subject is always good to get your knowledge up to scratch. Don’t be taken in with companies offering easy investment opportunities, as they will charge you to invest, often with hidden fees.
Start Small And Long Term
If you are not sure where to start, always start small, but think of it as I said before, as a medium or long-term investment. As you invest you can see what is happening with your investment over the first few months. Although fine wine is a medium to long-term investment if you have never invested in wine before, be cautious until you know what you are doing. When you become more confident then you could invest more.
Store The Wine Professionally
Don’t forget to consider the storage of the wine. There are places that can do this for you in government licensed bonded warehouses. If you are buying expensive cases of wine you should budget for this if possible. Don’t forget to ensure your stock in case accidents happen.
So as you can see there are many things to consider when buying a bottle of fine wine or a case of wine. I hope you enjoyed this article.