How to Invest in Fine Wine – a Complete Guide

Wine investment can sound challenging, but it is less complicated than you might think and can be highly rewarding. It is no longer something only the elites can do. Now, thanks to the development of better storing technologies and online platforms, you can do it too.

We’ll teach you how to invest in wine, from determining the best wines to invest in to how to store them.

What Is Wine Investment?

Like any investment, investing in wines means stocking up with as much wine as possible and waiting until its value increases. Once the value has increased, you can decide whether to sell the wine or keep waiting until the value goes even higher. That way, you can recover your investment and make a profit.

Why Should I Invest In Fine Wines?

Markets are highly volatile, especially during times of crisis. That’s why diversifying your portfolio is so important. Wine is no different from investing in precious metals, but it can be cheaper and more secure.

Fine wine has outperformed most global equities for the last fifteen years, even with market volatility. If you do it right, it can be a profitable enterprise that can help you reach your economic goals faster than usual stocks.

How to Invest in Wine Bottles by Yourself (3 Tips)

The best way to profit from your wine investment is to buy only the best wines available. This means you will need to learn at the very least the basics of fine wine and how the industry works. Here are five tips to dive into the fine wine investment industry!

1. Do Your Research

You will need to have a basic understanding of what a fine wine for investment is. You cannot just buy any wine on the market because some bottles won’t increase in value, regardless of how long you store them.

There are also fine wines that increase in value slower than others. Investment-grade wines are fine wines that increase their value after five years.

The most common varieties are from the French regions of Bordeaux, Burgundy, and Champagne. Their value also depends on their availability, growing demand, and age.

2. Determine Your Investment Budget

Now that you know more about wines, you can start thinking about your budget. It is better to invest in a small amount when it is your first time. Start small and slowly until you have enough capital to purchase the finest wines with the best return value.

Before investing, check your savings and monthly costs. Determine how much of your income you can spare on investments.

Then you need to determine how much of that investment money you’ll use for fine wine investment. As a rule, we recommend starting your investment with at least 10,000 USD.

3. Choose the Right Place to Buy Wine

These are the most common and safer options if you want to buy your own fine wine bottles:

• Auction houses: You can look for physical or online auctions near you. Remember to always read reviews and experiences from previous users.
• Wine brokers: Using wine brokers will make the entire process easier for you, but it will also cost you or reduce your profits. The brokers will trade and buy on your behalf, so there’s nothing else you need to do but watch your portfolio grow.
• Wineries: You can buy your wine from a local vineyard or a prestigious chateau. It can be done in person or online, depending on your preference.
• Specialty stores: Some of the most luxurious specialty stores sell hand-picked investment-grade wines.
• Wine stock exchanges: Wine stock exchanges have investment-grade wines that can be shipped internationally.

Determine How to Store Your Wine Collection

One of the most important aspects of wine investment is determining how and where you’ll store your wine collection. You need to find a place with enough space for growth and ideal conditions and environment for proper aging.

Here’s what you need to do to create a proper place to store your fine wine investment.

Find the Right Location for Your Cellar

The first thing you need to do is find the right location to build a spacious and expandable wine cellar. The space you choose should also provide the ideal temperature and humidity for proper aging.

These are some places you can use in your home:

• Basement
• Hallways
• Spare bedrooms
• Closets
• Living room
• Dining room

Remember that light, especially sunlight, can degrade and prematurely age wine. That’s why most bottles are made of colored glass, which serves as a sun protector. We also recommend using a dark place for your cellar.

Design Your Wine Cellar

Now that you have the right location to store your wine investment, you can start designing your cellar. You can go for a classic and rustic look with wood racks and warm colors. Or, you can choose a more modern style with metal racks, fiberglass, and matching enclosures.

Some experts believe that constant shaking can keep old wines from settling, which changes their texture and makes them unpleasantly gritty. So, choosing the ideal racks for your wine cellar should be another essential aspect to consider.

If you are not an expert in interior design, don’t worry. At Wine Racks America, we offer you a free wine cellar design consultation!

Create the Proper Environment

The right environment for your wine collection will provide the ideal conditions for proper aging, meaning steady temperature and humidity. For instance, temperature-wise, you need to keep your wine cool but not too cool. A room temperature of between 45° F and 55° F should do the trick.

Temperatures over 70° F can age the wine quicker than desired and can even cook it. If the place you’ve chosen to store your wine doesn’t have the ideal temperature, you’ll need to invest in a cooling unit.

Another aspect to consider is the overall humidity of your wine cellar location. Unless you live in a desert or an extremely cold place, the humidity won’t need much alteration. If you do live in a dry area, you’ll need to get a humidifier to keep the environment at a steady humidity of 70%.

The Right Way to Store Your Wine Investment

Most experts agree that storing your wine sideways is ideal for preventing the cork from shrinking or cracking. The wine itself will keep it humid for as long as necessary. However, it is not the only benefit of storing your wine horizontally.

If you are planning to grow your collection of investment-grade wine, you’ll need enough space for constant growth. Storing your wines sideways is an excellent way to save space while maintaining them safe for proper aging.

Now that you have the perfect location for your wine collection, you can start investing in fine wines!

Create the Perfect Cellar to Store Your Wine Collection with Wine Racks America

Nothing goes better with a wine collection than a well-designed cellar for your ever-expanding investment. If you are looking for the best wine racks to store your wine, including wood wine racks or metal wine racks, Wine Racks America has got you covered.

We have everything you need to create a professional storage space for your wine, including custom wine cellars, wine racks, wine cellar cooling units, wine humidifier systems, and enclosures. Contact us at 888-373-6057 for more information about our products and a free wine cellar design consultation.