Investing in fine wine is a good investment

The older the wine, the better. This phrase applies not only to the taste of the wine but also to its value which increases over time.

Wine is valued based on scarcity, blend, label reputation, and longevity, so keep these in mind before making any decisions. What began with a few million is now a $5 billion market, * roughly 65 percent larger than a decade ago. Wine investments performed unaffected even in extreme situations such as the pandemic. Because of the ability of wine investments to provide a hedge against inflation and currency depreciation, wine is a favourite alternative asset for many modern-day institutional investors.

The value of wine depends on many factors. Here are a few of them

Scarcity: The rarer your wine is, the more is its value. People want to own precious and rare things for status in society. Some people do it out of their pleasure.

Combination: Wine should be a proper blend of acidity, alcohol, flavour, and tannins. This determines how well it will age with time. If the blend is not good, the age might not matter.

Reputation: The pedigree of the winemaker is also an important factor. Traditionally, people consider the Bordeaux region, Burgundy, Rhone Valley, and Tuscany in Italy as highly reputed winemakers.

Longevity: It might take wines 10-25 years to reach peak maturity. Things to keep in mind while investing in wine:

Research is important in any kind of investment. As mentioned earlier, people buy wine out of pleasure, it is important to do research on which wine people have bought in the last few years and which one they might be interested in buying after a few years.

Experts say that you need a minimum of $10,000 to start investing in fine wine. There’s a wide range of wine available and it is good to maintain a portfolio of different kinds of wine such.