Fine Wine Investment

When looking at investing we normally think of stocks, shares, gold and real estate. However, I have recently been introduced to ‘fine wine investment' and it is this topic that I wish to discuss today.

wine collection

“It has become quite a common proverb that in wine there is truth,” 1st-century A.D. Roman scholar, Pliny the Elder.

The fine wine market – worth some $5bn-$6bn per year globally – consistently outperforms other financial instruments, making it an attractive option for a wide range of investors

wine investment portfolio

Introduction to wine

Wine has a history of over 9000 years. It is mentioned in the bible. It starts with the soil. Weather plays an important part as does the wine maker. Generations of families protecting their craft.mountain vine yard

Soil

The Ideal Soil appears to be sandy loam as the best soil type for growing grapes. This type of soil offers the best blend of characteristics.

A crumbly mix of sand, silt, and clay when blended with other soils in the right amounts offers the ideal soil type for grape growing.

It drains well but contains a moderate amount of nutritious organic matter and generally lies within the preferred pH range.

A healthy vine will take up a minimum of about 50 square feet of arbor space, and vigorous varieties or vines grown on deep, rich soil should be given 75 to 100 square feet or more.

vineyard

Climate

It is important to consider the environment before taking up grape growing. Grapes generally require a hot and dry climate where temperatures range from 60-105˚ F (15-40˚C). The climate should experience mild winters, little humidity and limited annual rainfall.

Adequate rainfall during the growing season is also important. While grapevines prefer rocky, sandy soil, they do need abundant water. Grapes like a soil pH of between 6 and 6.5, but can grow anywhere between a pH of 5 and 7.

Improve biodiversity and manage our land in a way that respects existing ecosystems where even the tiniest living organism plays a role in the cycle of life and especially that of the vine.

Vineyards

What are the different grapes used to make wine

There are over 10,000 varieties of wine grapes in the world. Often, certain types of grapes are popular in certain countries.

Many of these varieties have been developed by using grafting and other methods to produce new hybrids.

grape type

 

Types of Wine

  • White Wines. These being Riesling, Chardonnay, Pinot Grigio, Chenin Blanc, Sauvignon Blanc and Moscato. …
  • Rose
  • Red Wines Merlot and Syrah Cabernet Sauvignon, Pinot Noir,
  • Sweet
  • Sparkling Wines

wine types

Old world wine

Old world wine countries include: France, Italy, Spain, Portugal, Greece, Austria, Hungary, and Germany. Also, based on the definition, countries like Turkey, Georgia, Armenia, and Moldova are also able to be considered old world wine regions too!

 

New World Wine

New World wines are those wines produced outside the traditional wine growing areas of Europe and the Middle East, in particular from Argentina, Australia, Canada, Chile, New Zealand, South Africa and the United States (primarily California).

The most basic difference between Old World and New World wines is geographic: “Old World” refers to the traditional wine growing regions of Europe, while “New World” refers to everything else. … These wines are often made in a more highly extracted and oak-influenced style.

Enthusiasts have been seeking out the best wines since the invention of wine itself.

Oenophile

Oenophile a lover or connoisseur of wine.  Latin borrowed from the Greek to create a combining form that means “wine,” oeno-. Modern French speakers combined oeno- with -phile (Greek for “lover of”) to create oenophile before we adopted it from them in the mid-1800s. Oenophiles are sure to know as the science of wine making and oenologist for one versed in oenology.

wine casks

How do you get involved in fine wine investment?

The fine wine market – worth some $5bn-$6bn per year globally – consistently outperforms other financial instruments, making it an attractive option for a wide range of investors

Wine investment has existed for decades. It is no longer the sole preserve of luxury investors or high net worth individuals, and increasing numbers of people from all backgrounds are considering wine investment as a fruitful alternative to the usual commodities.

Wine investors see return on investment by capitalising on the balance of supply and demand.

Great vintages and highly sought-after bottles from the likes of Bordeaux and Burgundy are being bought all the time, decreasing supply leads to increased demand, which pushes up prices.

Those in possession of prize wines are then able to sell them on for an often very handsome profit. Investment-grade wines that come from the most esteemed winemakers in the world.

Wine tasting

A wine’s value involves a number of factors, such as the brand, vintage quality, availability and scores from critics

Seasoned collectors with a wealth of wine investment experience may be able to identify lucrative buying opportunities themselves using quantitative and qualitative analysis to determine which wines are in line for a price growth, or are currently undervalued and represent strong investment potential but many will engage the services of a trusted wine investment company

Fine wines that constitute the investment grade market are less than 1% of fine wine produced.

International banking firm Morgan Stanley has published a report on the status of the global wine market, concluding that a worldwide shortage of wine is imminent. Demand is already exceeding supply, and in 2012 the shortfall amounted to some 300 million cases.

wine cellar

As I stated earlier Investing in wine is probably not the first thing you think of when you are considering an investment portfolio however, increasing numbers of people from all backgrounds are considering wine investment.

If you would like to know more about the wine in your glass before considering which wines to invest in, a brand new video documentary is shortly going to be aired and this information is free to watch if you would like to click here

wine grapes picked