How to Invest in Wine

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Why should you consider investing wine? Because it is a highly lucrative and fun hobby, one that can eventually net you enormous amounts for just one single bottle. One thing you should do before investing in wine is learn more about how wine is made-taking this step will allow you to get a better idea about how wines age, and why the older they get (for the most part), the more their price goes up.

Investing in wine

Below are some of the nuts and bolts you should have a handle on before deciding to invest in wine-

Consult a sommelier. What's a sommelier? A sommelier is a person who orders and maintains the wines that are sold in restaurants, most usually high end ones. This person has vast knowledge and expertise on wines and how they are made and priced. You can register for free at the International Sommelier Guild and use the discussion board to ask questions about industry news, great wines, and wine recommendations. Needless to say this will also be a great place to ask a question about the value of a particular bottle of wine you're thinking of investing in, or a vineyard you've heard about that makes wine that skyrockets in price as it ages.
If you don't want to take this step, then know the basics about how vintages are produced: the climate, soil, the skills and reputation of the winemaker, and vine genetics play a great role in determining the value of a bottle of wine. Every year the climate changes at a vineyard-this change brings about significant variations to the wine that's made there, resulting in the end products being classified as vintages.
Find out which vineyards and winemakers around the world have the best reputations-you can bet that, say, an esteemed vineyard in France that you've investigated and know has a great standing in the wine world will have vintages that would be worth investing in.
Be WELL AWARE of the fact that many wines being made today are not made to age-they are made to be drank, many within a two-year time period. Obviously, these wines will be not be wines that will grow in price and stature as they age.
Also be aware that the price of the wine is not necessarily the best indicator of the actual quality of the wine-many wines are labeled with staggering price tags simply because the wine is in great demand or in vogue. While these wines might not taste all that good, they will get snatched up and become rare, so consider buying one.
Fancy labels, especially ones embossed with gold, can greatly increase the price of a bottle.
Investing in wine is similar to other investments in that higher quality wines will tend to hold their value best.

Caution

If you plan to invest in 'futures'i.e., a bottle of wine that is yet to be bottled, take care because it is basically a risky venture. You must know or get reliable information on whether or not the vintage and demands for the wine are favorable, as well as what monetary fluctuations could come into play.

More information on investing in wine

For more information and paths to research in investing in wines, check out the links given below-

Vinfolio is an indispensable resource for wine collectors withwine offers, reviews and scores, and acquisition services.

Investing in Grapes, Vineyards & Winesis a terrific collection of links to all things wine-related. Includes links to sites on wine release dates and how to bid on wine at an auction.

Wine-Searcher.comhas a 'Fine Wine Investment Advice' section which covers the basics of wine investment, and offers chapters on wine scores, futures, prices, storage, and counterfeits.

Into Wine offers general information on wine.