Other than
its inherent scarcity, there are a number of outside factors
that may affect the rate by which the value of a fine wine increases.
The most significant one is publicity; a well-placed article
about the merits of a particular vintage may lead to it becoming
sought-after, both by investors and connoisseurs, thereby enhancing
its value as an asset.
Another
is the terms under which the fine wine was originally purchased,
and herein lies a particular pitfall. Wine is invariably purchased
from merchants, who happen also to be amongst the most expert
on the subject and who therefore tend to double up as “advisors”.
One often finds oneself in the position of having to take advice
from the seller when dealing in fine wine investments and an
artificial mark-up leaves the investor having to recover lost
value before making any real profit on the investment. Worse
still, fine wines purchased from less reputable merchants may
be other than as advised on the proverbial tin, and potentially
worthless.
It is essential
before entering into any kind of contract of purchase agreement
that the buyer of the fine wine is entirely confident in the
integrity of the advice given, as well of course as in its source.
Learn more about investing in fine wine as part of a diverse
portfolio at the above fine wine investment companies and investment
websites.
