If you are one of many investors out there looking for opportunities and would consider the field of play within the fine wine investment market, there is one major rule you should at least start with if you decide to take the plunge…………
With your research concluded and confident (as you can be) – realising that wine investment does indeed offer an excellent way to diversify your investment strategy – weighing up the risk and exposure over the mid-long term horizon to increase your wealth accordingly seems as good a bet than any – as well as being ‘inflation-proof’; you begin to cipher through the numerous merchants and brokers that will win your business.
So who do you choose to buy your wine from?
In the UK, the list is long. From within the list there are many that should be avoided at all costs – then there are those that offer fair game but need to cover the extortionate over-heads (due to their location, running costs and of course share-holder dividends) – which are then passed onto clients via management fees and excessive ‘spreads’. One should also point out at this time the ‘secondary-market’ indices that have been introduced to the investor over the past twelve months; open trading platforms where investors and collectors trade between themselves whilst paying a ‘trading fee’ – after paying . These are useful, but require at least TEN years of market experience to truly identify a real opportunity – so be warned.
So, you have narrowed down and shortlisted the companies that will source the wines for you. At this point, you will no doubt have been ‘charmed’ more by one than the other and have been swept away with the one thing that gets to us all………GREED!! – Before you know it – the most dangerous of all sins has consumed your entire research without chewing first and allowed you to be blindfolded and led down a path that may turn out to take longer to reach your intended destination than you originally intended!
However, one would hope that within the ‘age of information’ we meander through today and aides such as Wine-Searcher (.com) which advertise wines sold into the ‘secondary’ market of the investor – there is sufficient evidence available to make comparison when assessing prices.
Despite price being one of the main factorshere when buying wine, the FIRST and MOST important rule is something that will often be missed for novice investors in the wine market. In fact even some of the major merchants here in the UK fall foul of this FIRST and MOST important rule. It is often a circumstance that allows those less desirable companies to take advantage of (by multi-trading the same stock over and over again), and in order to overcome scenarios that so often plague the wine investment arena (most recently the likes of Bordeaux UK and Vinance) – the dreaded ‘Umbrella (storage) Account’ has been the cause of so much misery – when simply following the FIRST and MOST important rule one can safe guard your asset from such travesties……..
The FIRST and MOST important rule for fine wine investment is…………………..
OPEN A PRIVATE STORAGE ACCOUNT WITHIN THE UK BONDED WAREHOUSE SYSTEM (HMRC REGISTERED) TO STORE YOUR WINE – PROTECTING YOUR ASSET AS WELL AS BEING INSURED AGAINST DAMAGE, GIVING YOU FULL CONTROL AND SAFEGUARDING THE PROVENANCE SO THAT WHEN THE TIME IS RIGHT – YOU CAN SELL AT THE BEST MARKET PRICE!
Recommended and Independent (HMRC Registered) UK Bonded Warehouses:
London City Bond (LCB) – http://www.lcb.co.uk/
Vinotheque (LCB) – http://www.vinotheque.co.uk/
Octavian – http://www.octavian.co.uk/