Advertising
Advertising

A Beginner’s Guide to Investing in Wine

A Beginner’s Guide to Investing in Wine

Experts say “invest in what you know.” Well for me, one of the things I know and love is wine. I’m sure the rest of you winos reading this understand. One thing that you might not have known until now, is that it is possible to make some money off of your love affair with this fermented beverage from the gods.

Investing in wine is certainly not a new concept, however, it is one that is trending a bit more now that a push to get more Americans investing has begun. Interest in the stock market has seen a significant drop given the economic rough patch our nation hit back in 2008. However, it remains an important part of building the high risk/high potential funds you need to supplement retirement savings.

If you’re a wino looking to diversify your investment portfolio with a commodity investment, investing in wine could be a good option. Here is a beginner’s guide to investing in wine that might help you determine whether or not it’s a solid prospect for your next addition to your portfolio.

1. Start a sufficient savings

As you probably already know, investing in wine isn’t quite as simple as heading to the store to purchase a bottle slightly above the price you’d already buy then waiting for it to grow in value. Determining how much you’re planning to invest in wine depends on whether you’re doing it for the love of wine or the potential for serious money.

Advertising

If you’d prefer to simply start collecting the wines you enjoy out of your pure love of wine, Investopedia recommends treating your collection like a baseball card or stamp collection where you pick up wines that interest you as you go. Although the payout might not be as grand this way, you could still end up with some delicious wines to drink if they don’t sell.

2. Be prepared to wait

When it comes to investing in wine, you have to be patient for the right time to buy. You have to carry out research on what vintages and wine producers have done well in the past and what is expected to happen in the future. For example, the past few vintages of Bordeaux wine have not been great and an investment could have been a bad decision. However, last year thanks to the “Rule of Fives”, this year is looking like a great year to invest in Bordeaux according to wine experts.

Unlike certain stock investments, wine can take a while to grow in value. Although this might seem like downfall for some investors, it actually could be a good thing for investors who are getting in the game early and have the precious gift of time on their sides.

According to MarketWatch, investments in wine can take 10-20 years to yield a return. If you’re looking to diversify your investments to supplement your retirement funds, this might not be an issue. If you’re looking for quick money, wine is probably not your best bet.

Advertising

wine 2

    3. Look into professional storage options

    Storing wine that is intended for investment on your own is very risky. In order for wine to rise to its full potential, it must be stored at a temperature that is cool, but not too cool, in a dark area that doesn’t see much light, and away from shaking and excessive humidity. You could purchase a wine cooler, but experts in wine investing highly recommend professional storage in order to achieve higher perceived value upon selling. If you choose to go with a professional storage service, there are online guides that can help you find them in your area.

    If you choose to take the gamble and store your wines on your own, the Wine Spectator offers up a pretty solid guide to help you out.

    4. Purchase at least three bottles to get going

    According to Wine Folly, serious investors should plan to purchase at least three bottles to get started. These bottles should add up to at least $8,000 in value. This is recommended because when you consider the sizable cost of storing, insuring, and ultimately selling your wine, it becomes clearer that you should invest a sizable amount upfront to make the return worth the hassle.

    Advertising

    But, as I also mentioned above, it’s possible that you’d prefer to take a more modest approach to investing in wine and treat your collection more like a passion project rather than a serious money maker. If this is the case, you’ll more than likely want to buy at your own discretion.

    5. Understand market risks

    As with all investments, investing in wine comes with a certain degree of risk. As a commodity investment, you might notice that the market is a bit more volatile than others due to industry changes. This is why diversification in your investment portfolio is so important. You simply cannot rely on one form of investing alone whether it be wine, stocks, or even your 401(k).

    As with any market you plan to enter, you should do your research to understand where the market for wine investment has been, where it currently sits, and where it might be headed in the future. This will give you a better idea of where your potential risks and benefits lie.

    Advertising

    wine 1

      Now that you’ve got the basic information, does investing in wine sound like something you might be interested in adding to your investment portfolio? If so, use the resources throughout this post to learn a little more about the process. I might also recommend reaching out to an industry expert or two to find out how he or she got started and gather some professional insight. You never know, your love of wine could turn into a profitable skill if you play your cards right!

      Featured photo credit: perfectinsider via perfectinsider.com

      More by this author

      6 Ways to Get Out of a Creative Rut 5 Incredible Underrated Locations to Spend a Year 5 Smart Moves For Millennials To Boost Retirement Savings 5 Ways To Boost Your Website’s Success In 2017 How to Tech Out Your Home With DIY Security

      Trending in Money

      1 50 Businesses You Can Start In Your Spare Time 2 The Average Retirement Savings and How to Save Wisely 3 How to Invest for Retirement (The Smart and Stress-Free Way) 4 How to Nix Your Credit Card Debt in Less Than 3 Years 5 Top 5 Spending Tracker Apps to Manage Your Budget Smart in 2019

      Read Next

      Advertising
      Advertising
      Advertising

      Last Updated on June 20, 2019

      50 Businesses You Can Start In Your Spare Time

      50 Businesses You Can Start In Your Spare Time

      Most people want a few more dollars in their wallets. But between an employer and family, the time most of us can devote to a second job is severely limited. Running a small side business can provide a few more options: you don’t have to show up at a set time and you can use skills you already have. Not all will be perfect for everyone, of course, and I’m sure that you’ll have a few ideas of your own after reading this list. If you’d like to share any other business ideas, please add them in the comments.

      1. Selling collectibles — From antique books to teddy bears, there are plenty of opportunities to buy and sell collectibles. It’s important to familiarize yourself with the collectible of your choice but if you choose something that you’ve been collecting for a while, you’ve got a head start.
      2. Locating apartments — It can take time to sort through apartment listings, but you can make some money by finding the perfect apartment for a renter.
      3. Baby proofing — New parents often prefer to bring in an expert to make sure their home is safe for a new baby.
      4. Calligraphic writing — If you’ve got elegant handwriting, you can pick up gigs writing or addressing wedding invitations, holiday cards and more.
      5. Selling coupons — Search on eBay for coupons right now and you’ll see thousands of listings for coupons. It’s just a matter of clipping and listing what you find in your Sunday newspaper.
      6. Pet training — A surprising number of people don’t know where to start in training a pet. Even teaching Rover simple commands like ‘Sit’ and ‘Stay’ can bring in a few dollars.
      7. Running errands — A wide variety of people want to outsource their errands, from those folks who aren’t able to leave their homes easily to those who have a busy schedule.
      8. Researching family trees — Amateur genealogists often call in experts, especially to handle research that has to be done in person in a far off place. If you’re willing to go to a local church and copy a few records, you can handle many family tree research requests.
      9. Supplying firewood — The prerequisite for selling firewood is having a source of wood; if you’ve got some land where you can cut down a few trees, you’ve got a head start.
      10. Hauling — As more people trade in their SUVs for compact cars, hauling is becoming more important: people have to rent a truck or hire a hauler for even small loads.
      11. Image consulting — Image consultants provide a wide variety of services, ranging from offering advice on appearance to teaching etiquette.
      12. Menu planning — For many people, the trip up in eating home-cooked or healthy meals is knowing what to prepare. Meal planners set a schedule to solve certain dietary problems.
      13. Microfarming — Cultivating food and flowers on small plots of land allows you to sell produce easily.
      14. Offering notary public services — Notary publics can witness and authenticate documents: a service needed for all sorts of official documents.
      15. Teaching music — If you’re skilled with a musical instrument, you can earn money by offering lessons.
      16. Mystery shopping — Mystery shoppers check the conditions and service at a store and report back to the store’s higher-ups.
      17. Offering research services — Just by reading up on a topic and compiling a report on it can earn you money.
      18. Personal shopping — Personal shoppers typically select gifts, apparel and other products for clients, helping them save time.
      19. Pet breeding — Purebred pets can be quite value, especially if you can verify their pedigree.
      20. Removing snow — During the winter months, shoveling walks can still be a reliable way to earn money. You might be asked to take care of the driveway too.
      21. Utility auditing — As people become environmentally-concious, they want to know just how efficient their homes are. With some simple testing, you can tell them.
      22. Offering web hosting services — Providing server space can be lucrative, particularly if you can provide tech support to your clients.
      23. Cutting lawns — An old standby, cutting lawns and other landscaping services can provide a second income in the summer.
      24. Auctioning items on eBay — Want to get rid of all your old stuff? Stick it up on eBay and auction it off.
      25. Babysitting — Child care of all kinds, from babysitting to nannying, can offer constant opportunities.
      26. Freelance writing — If you’ve got the skills to write clearly, you can sell your pen for everything from blogs to advertising copy.
      27. Selling blog and website themes — Do a little designing on the side? Customers that don’t want to pay full price for a website will often pay for a template or theme.
      28. Offering computer help — Particularly with people new to computers, you can earn money by providing in-home computer help.
      29. Designing websites — It may require a little skilled effort, but designing websites remains a reliable source of income.
      30. Selling stock photography — For shutterbugs, an easy way to put a photography collection to work is to post it to a stock photography site.
      31. Freelance designing — Check with local businesses: you can provide brochures, business cards and other design work and get paid a good fee.
      32. Tutoring — Math and languages reamin the easiest subjects to find tutoring gigs for, but there is demand for other fields as well.
      33. Housesitting / petsitting — Stopping in to check on a house or pet can earn you some money, and maybe even a place to stay.
      34. Building niche websites — If you can put together a site on a very specific topic, you can put targeted ads on it and make money quickly.
      35. Translating — The variety of translating work available is huge: written word, on the spot and more is easy to find even on a part-time basis.
      36. Creating custom crafts — No matter what kind of crafts you make, there’s likely a market for it. Etsy remains one of the easiest places to sell crafts.
      37. Setting up a wi-fi hotspot — With a little bit of equipment, you can set up a wi-fi hotspot and charge your neighbors for the access they’ve been ‘borrowing.’
      38. Selling an e-book — You can write an e-book about almost anything and put it up for sale online.
      39. Affiliate marketing — If you’re willing to market other companies’ products, you can earn a cut of the sales.
      40. Renting out your spare room — From looking for a long-term roommate to listing your guest room on couch surfing sites, that spare room can make you money.
      41. Offering handy man services — Handling small household tasks can provide you with plenty of work, although you’ll probably be expected to have your own tools.
      42. Teaching an online class — Share your expertise through a website, an online seminar or variety of other methods.
      43. Building furniture — For those with the skill to create handmade furniture, selling their creations is often just a matter of advertising.
      44. Providing personal chef services — Personal chefs prepare meals ahead of time for customers, leaving their customers with a full freezer and no mess.
      45. Event planning — From planning corporate events to bar mitzvahs, an event planning business can require plenty of work and offer plenty of pay.
      46. Installing home safety products — Particularly as Baby Boomers age, people able to install handrails and other home safety products are in demand.
      47. Altering / tailoring — If your sewing skills are up to par, altering garments is coming back as people try to stretch more wear out of their clothing.
      48. Offering in-home beauty services — Hair cuts, makeup and other beauty services that can be performed at home have a growing demand.
      49. Business coaching — Helping others to establish and develop their businesses can provide many opportunities to earn money.
      50. Writing resumes — Writing resumes can provide a reliable income, especially if you can put a polish on a client’s credentials.

      There are plenty of offers that claim to provide you with the opportunity to make thousands of dollars a week. Unfortunately, none of these businesses will provide that sort of income, but they aren’t scams either. They were chosen because they all require a minimum investment to get started — some require nothing more than a flyer advertising your business. Even better, if you do enjoy any of these businesses, there is a potential with most of them to continue to expand — perhaps even to the point of going full time.

      Advertising

      Featured photo credit: Omar Prestwich via unsplash.com

      Advertising

      Advertising

      Read Next