Wine investment: Global changing trends and strategies

Demand for wines is growing in wine hubs in France, Philippines, China and Japan.  The market in Philippines recorded 7 per cent growth in value in comparison to 2017, while, France continues to be the fourth largest exporter after US, Australia and Spain. New marketing strategies which involve wine tasting events, or offering premiums on education and discounts on traveling, and other schemes have paved way for the emerging segment of wine buyers.    At a Sotheby New York auction, a bottle of 1945 Romanée-Conti was sold for £424,000.

There are some wine bottles, which can give huge returns to the investors and this has been favorite of collectors as it seems to be an easy to get-start option but there are risks. The investor need to track the market, movement of prices, trends and still there is no guarantee to the earnings until a proper research is done where one develops a better understanding of the brands and products to identify the ones that  are unique and can outperform others. Online tools can provide the backup for identifying the best wines with specific information on price history, brand strength, liquidity and relative values.

Some of the classic Bordeaux vintages are considered the best for wine investment. Liv Ex charts show the Bordeaux Legends 50 can provide a growth of 21 per cent in two years and 35 per cent in 5 years.  This was one of the best in 1982 to 2000.

A vintage costs more than other types of wines and the collectors need to differentiate between different types where one should be able to acknowledge the vintages from other types of wines.

There are some on- and-off wines, which remain in demand, sometimes, and are out of market in some other times.

There are in-between vintages – often noted for the high quality of the wine, in terms of superiority, some of the 2015 wines are better than 1990.

To start- define how much you are willing to invest and then, conduct a research to find out the wine merchants or sellers who can provide the information about the growing brands. The investment class mostly considers Bordeaux as the main stay, but even, Burgundy can provide lucrative growth. These days the Italian counterpart of these - Tuscany and Piedmont are picking up.  Invest grade varieties work in geographical regions where the product lives long, for which, one can get buyers in Europe, at the same time as, some wines are traded below expected range.

How to avoid wine frauds?

Many investors are defrauded through such investments where they lose millions in such items, buying less glamorous items. It is advised to seek established brands and keep a record of all i.e. the paper work of all kind of transactions involved in such trades – which should involve the history and details of producers.

Overall, it offers fascinating opportunities to grow. The passion for item and the diversification offered by it with a proper examination of the risk factors helps in long-term investment. For those who have excess to invest can get a regulated growth of 15 per cent compounded per annum by investing in safe brands.

To find out more about wine investment, check 99 Alternatives at (http://www.99alternatives.com).