More people are realizing that wine investment gives a better return than more traditional types of investments. Because of how easy it has become to start a wine collection, this asset is gaining popularity with every year that passes. However, to succeed in this industry, you need to know which wines will increase in value and which ones won’t.
The best way to select a bottle of wine for investment is to be mindful of the factors that will affect its value over time. Aspects like critic ratings, value appreciation, scarcity, and even the region where the wine was made are important factors to consider.
We’ll look at fine wine values and how you can find the right wine for your investment.
Why Does Wine Go Up in Value?
Previously, wine wasn’t a popular investment asset. People would choose real estate, luxury cars, or other premium assets to diversify their portfolios. However, that has been changing recently because of wine’s properties. After a year or two, wines increase in value and can keep appreciating for years to come.
Over the past few years, wine value has increased up to 25% worldwide. That’s an incredible return on investment for everyone, especially beginner investors—but why exactly does wine go up in value? Wine gets richer in flavor and more desirable the older it gets. The more delicious the wine, the more for which you can sell it. Another aspect that plays a vital role in wine value is scarcity. The more difficult it is to find a wine bottle, the more it will be worth.
How Much Does Wine Appreciate in Value?
The first thing you need to know about wine appreciation over time is that not all wines will increase in value. The wines that increase their value after five years are known as investment-grade wines, and they tend to be more expensive and difficult to find.
Investment-grade wines can increase their value up to 25% after just a year or two after purchase. After a year, you could sell a bottle for a profit, but the wine will keep increasing in value if you wait. After five years, most investment-grade wines can increase up to 60% of their original value.
However, most wines don’t have the necessary properties to be investment-grade wines. So, you need to learn how to determine wine value before you commit to purchasing a bottle.
How to Value Wine
To properly value wine, you need to consider a wide range of factors, including the overall rate and scarcity of the wine itself. However, those two aspects, vital as they are, are not the only factors to keep in mind when valuing wine.
Here are the essential aspects to consider when buying investment-grade wine:
- ● Age-worthiness: Not all wines get better with age, and determining whether yours will is essential. For a wine to become investment-grade, it needs to have the right mix of alcohol, flavor, acidity, and tannins. If your wine has the proper preparation and blend, you can store it for aging. If not, you should drink it because it will lose its pleasant flavor.
- ● Scarcity: Investment-grade wines are finite and will eventually decrease in quantity. For instance, there might be a couple of dozen Dom Perignon 2002 bottles right now. However, in a year or two, there might be only ten. That’s when fine wine starts increasing in value exponentially.
- ● Ratings: Critics tend to rate fine wine with a grade between 0 and 100. Although a rating of 80 means a wine is good, investment-grade wines tend to have ratings between 95 and 100. If your wine has a rating below that number, it might not be the ideal option for investment.
- ● Longevity: Investment-grade wines already have an increased value after a few years of aging. However, after ten years, most of them will peak in flavor and desirability. Few of them can keep aging up to 25 years after being bottled.
- ● Pedigree: Investment wines are only made by winemakers with the best and most reliable reputations. A wine you bought from a gas station likely won’t have the requirements to become a good investment. You also have to consider the production region, such as Tuscany or Burgundy. They are some of the most famous wine regions worldwide and can lend legitimacy to your wine.
- ● Price appreciation: If you buy a wine bottle that has already been sold and bought many times, you need to check its price history. The wine should have increased its price exponentially, depending on the number of times it has been sold.
One of the most important aspects to remember when collecting wine is that wines are not eternal. They have expiration dates and will slowly decrease in value past that date. So, be mindful of your wine expiration date before starting your collection.
Wine Value Lookup
The best way to determine the overall value of your wine is to do a wine value lookup. This search process can help you find out everything related to your wine investment, from its critical ratings to its scarcity, to sell it for the right price. Where can you find this information?
You might consider using a search engine like Google to find the necessary information. However, there are also websites specializing in fine wine like Wine-Searcher. This site allows you to type in the name of your wine bottle to find out its track record, rating, and price appreciation.
If you are looking to buy a bottle of wine with no track record, you can still determine its value through its winery’s history. If the winery you are buying from has a good track record with fine wine, you can consider it a good investment.
Best Wines to Invest In
Finding the best wines to invest in is not a challenging task. Most of these famous investment-grade wines are known worldwide, and they can be pretty expensive if you are just starting.
For instance, brands like Leroy, Gaja, Dom Perignon, and Penfolds tend to dominate the fine wine market because of how reliable they are.
It doesn’t mean you only need to invest in these brands. Other wineries worldwide are becoming popular because they are quality and affordable alternatives to traditional wine brands.
Just remember that the best wines to invest in are the ones that will increase in value over time. Therefore, you’ll want to consider multiple factors.
Store Your Investment Wine Properly with Wine Racks America
If you need one thing for your wine collection, it’s the proper space to store it. To keep your wine safe and sound, you need racks to protect your bottles and show off your growing collection. Buying the right wine is just one part of the process. Keeping it safe until you can sell it for a profit is the other part.
At Wine Racks America, we have the best wine racks and wine storage accessories for your needs. Whether you need metal wine racks, wood wine racks, or a professional cellar design, we have got you covered. Our products are designed to help you keep your wine collection safe while it ages.
You can check out our website for more information about our products and services or call us at 888-373-6057!