In addition to being a fun hobby, investing in wine is a great way to make money over the long term. Just like any investment there are things you can do to increase your chances of success. Before you begin to invest, you should learn as much as you can about the different types of wine, the history of wine making and which ones will age best. If you make the wrong investments you may be stuck with a lot of bad wine and will not earn much of a profit.

Connect with Professionals

If you are interested in investing in wine, but do not know much about getting started, you should connect with professionals who can point you in the right direction. One of the best places to start is the International Sommelier Guide. A sommelier is in charge of ordering fine wine for restaurants. They are well known for their knowledge of the industry. Some will know more about investing than others, so make sure you talk with as many as you can.

Also, learn more about the different vineyards and winemakers across the globe. Once you have a better understanding of what a particular vineyard has to offer, you will have a better idea if it is something you are interested in.

Longevity

When investing in wine you have to consider how long it is going to stay “good.” Many wines that are produced in today are meant to be consumed relatively quickly. You should avoid investing in wines with short lifespans because their value is sure to decrease over time as opposed to making you money.

When investing in wine you have a couple of options. You can buy newer bottles and hope that they gain value as the years, or you can purchase bottles that are already good investments. While you may be tempted to only buy wine that is expensive, it does not always translate into a good investment. Many types of wine may be priced high right now, but only because of high demand. This does not mean that it is going to hold its value over time and make for a good investment. As a general rule of thumb it is best to invest in wine that is difficult to find.

Indexes

There are many indexes that track portfolios of fine wine. The wines that make up individual indexes are those that are bought and sold most commonly at auctions. The nine indexes include: Fine Wine 100, Fine Wine 250, Bordeaux First Growth 100, California 100, Rhone 50, Burgundy 50, Italy 25, Australia 20 and Port 10.

Just like any other type of investing, you need a budget when getting involved with wine. You can make a lot of money with a relatively small investment if you are willing to buy and hold. Before you decide that investing in wine is a good idea, make sure you speak with professionals who know what it takes to be successful. You should also strive to learn about the finer details of investing including the different vineyards, longevity, and supply and demand.

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