How To Invest In Fine Wine

 

Investment Term

An investment in fine wine should be seen as a long-term one, and we would suggest a minimum term of 5 years. What is to be considered is that wine is a wasting asset, therefore the supply and demand economics suggest the longer wine is held, the more valuable it should become.

The market may allow good returns to be seen within a 5-year period, as over the past few years the fine wine market has seen significant price movement in a relatively short term. However this should not be considered the norm, so a minimum term of 5 years is advised when venturing into fine wine investment.

 

Amount

In theory one could start investing in wine with as little as a few hundred pounds, but as the prices for the best wines rise, investment in them becomes more expensive. We would recommend an initial investment of £10000.

 

Storage

Make sure that your wine is stored professionally in a temperature and humidity-controlled bonded storage facility, and is registered in your name. Also make sure that the wines are insured.

All of our wines, including wines held on behalf of our customers are stored in perfect conditions and are insured at full replacement value within London City Bond network, which is one of Britain’s leading HMRC Approved bonded warehouse facilities.

 

Selling

Depending on market conditions Paramount Vintners will normally make an offer to buy your wine outright, though the majority of our customers choose to use our broking facility where they would receive a better return on their wine.

 

Provenance

The provenance of fine wine is a key factor in its value. Only buy wines in their original cases, that are in good condition and have good provenance.

Paramount Vintners have a strict buying and stock admission system, ensuring that all our wines meet these requirements.

 

En Primeur

Buying En Primeur, also known as wine futures, is a practice of buying wine at a pre-bottled stage before they are released onto the market. In theory this is the cheapest time to buy wine. Wines puchased at this stage are exclusive of Duty and VAT.

 

Valuation

Paramount Vintners customers have access to up to date valuation prices through their online portfolio. Alternatively anyone who wishes to can obtain a valuation of their wines through our valuation service on our website, or by contacting our valuation department on, +44 (0)20 7887 2250 or valuations@paramountvintners.co.uk

 

Investment Costs

Aside from the purchase price of the wine and storage charges (currently £8.28 Per case/per year if you choose to store with us), there are no other costs.

 

The Correct Wines

As with any investment, fine wine investment requires a depth of knowledge and expertise. Firstly study the market, our website enables you to view market price charts and wine scores of most vintages we have on sale. You may use this information against vintages with a similar wine score to decide whether a wine would be a good investment.

In our opinion Bordeaux should almost certainly form all or a large part of your wine investment portfolio, as they are globally established and remain the wine of choice for many.

If you opt for the Bordeaux First Growths – Château Lafite Rothschild, Château Latour, Château Margaux, Châteaux Haut-Brion or Château Mouton Rothschild, which are also known as the blue chip wines, you are certainly guaranteed to be making a great long-term investment decision. Beyond Bordeaux, Champagne, Burgundy and The Rhône Valley are also considered a safe bet.

The key factors to consider when investing in wine are:

1. Big Château
2. Big Vintage
3. Big Wine Score (no less than 90/100 and 18/20)

Paramount Vintners Investment Department specialises soley with fine wine investment and can offer focused advice and array of dedicated services. This makes Paramount Vintners the ideal partner to construct an investment portfolio for many.

 


 

 

To discuss this further or if you have any questions, please feel free to contact our Investment Department.
Tel: +44 (0)20 7887 2250
Email: investments@paramountvintners.co.uk

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