What are the Differences Between Collecting Wine and Investing in Wine for a Monetary Return?
The world of wine is vast and diverse. It is peppered with glorious glasses of incredible wines from fascinating regions and grapes. Yet, most people only know about a handful of wines from a handful of places and they stick to those tropes. That is ok. It can be best to stick with what you like and what you know.
If you are a regular wine drinker, you may collect your favorites to have them on hand for dinners and parties. You may bring bottles home from a memorable vacation and purchase special bottles to mark significant occasions. These wines end up in your cellar and become your collection. We collect wine to consume the luscious liquid and to consume the aesthetics that wine provides; the memories, the atmosphere, the elevated dining experiences, and the celebrations. Casual wine drinkers and aficionados alike create collections that are nostalgic. Wine collections are a source of pride, of a certain prestige, and are filled with memories. Wine collecting is emotionally driven. Wine collecting offers pleasure. Yet, collectible wines are not necessarily investment-grade blue-chip wines that offer monetary returns on their original investments.
What distinguishes investment-grade wines from the other 99% of wines produced in any given year? This finite group of wines will improve over time if aged in perfect temperature and humidity-controlled conditions. They come from producers with a lengthy history of making high-quality and age-worthy wines. They maintain their value over time and often see value growth as supply diminishes due to consumption. In other words: they thrive in the secondary market. Less than one percent of the wine produced in a year is age-worthy. Less than one percent of the wine produced in a year is investment-grade blue-chip wine.
Investing in wine is an entirely different approach to wine collecting. People invest in wine to earn a significant rate of return and to build wealth. Investing in wine is logic-driven. Investors learn to separate their emotions from their purchases. The smartest investors hire professionals to curate their wine investment collections. Wine investment collections are comprised of investment-grade blue-chip wines from the top producers in the best regions in the world. Wine investors don’t open their cases, they don’t sneak tastes of their wines. In fact, the most discipline wine investors never take physical possession of their wines, opting instead to keep them stored safely in professional storage facilities and tax-free zones known as free ports, in perfect climatic conditions, because they know that impeccable storage and provenance are two of the most crucial factors in garnering the highest rates of return on their investments. When they do decide to divest, they hire professionals to manage the transactions. The team at Cult Wines can turn any collector into an investor. Their highly trained and capable fine wine experts will be your guide inside the world of wine investing by providing exclusive access to the greatest wines the world has to offer and potentially great returns on your wine investments. www.wineinvestment.com
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