15th February 2012
In these times of austerity, making an investment might not necessarily be a priority for many people. But if you have money to spend in the hope of enjoying a big return in the future, you could do a lot worse than take a look at wine.
Charles Metcalfe, a wine expert and author, has spoken on the subject of investing in the alcoholic beverage with the intention of making a profit. He said the key to this is to be in a position where you can store the bottles for several years, allowing them to increase in value.
Another key factor is your choice of the type of wine you are to pump cash into. The industry expert noted that some of the most prestigious labels always do well and are perhaps the safest options.
Commenting on the top wines on offer, Mr Metcalfe stated: "Historically it's always been Bordeaux, and maybe we should now add more Burgundy – those are investment wines. There is one particular domaine, Domaine de la Romanee-Conti, which has always been a potential investment wine. "
He added that the greatest difference between the types is that wine from Chateau Lafite Rothschild is made in abundance, whereas Domaine de la Romanee-Conti is from a tiny vineyard and much rarer. You must decide which is the most attractive route to head down.
For those with a shorter-term view, the recent advice of Rachel O'Shea, marketing manager at Diageo, may come in handy. She said lighter and sweeter wines are due to be a hit in 2012.
Distributors must also consider how they will ship wine to investors, with packaging for bottles sure to be in high demand.
You will then hopefully come to realise that investing in wine can be just as lucrative as stocks and shares, property or bonds – and a whole lot more fun too.