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Fine Wine Investment – Consider Investing in Champagne
During the winter holiday season, people drink a lot more champagne than whiskey, vermouth or vodka. That’s because champagne is lighter, sweeter and merrier. It has a luxurious flavor other alcoholic drinks don’t have. This delicious sparkling wine is made from grapes that are attentively grown in France, in the Champagne wine region.
There are certain rules that must be applied, such as secondary wine fermentation in order to create carbonation. Many people use champagne when they’re referring to sparkling wine, even though sparkling wine is produced through a different type of process called appellation.
Champagne – A Leader In The Fine Wine Market
According to Liv-ex, champagne witnessed an incredible rise this past November. The Fine Wine 100 index follows the best 100 wines, and apparently the numbers rose by 0.3%. This increase is rather surprising considering that in the past 17 months things haven’t gone that well for the industry.
A major mover was the 2004 Taittinger Comtes de Champagne, which rose in November from $8.6 to £717. That’s pretty impressive, and this can only mean that things are going great for Comtes. This incredible prestige cuvees from France’s Champagne region has witnessed quite a lot of success in the past few years. That’s mainly because the quality of the beverage is exquisite, and exquisite quality automatically leads to solid scores. Some other leading movers that increased in value this November were: Pichon Lalande 1996, Lynch Bages 2000 and Haut-Brion 2008 (“off-vintage”).
Should You Invest In Champagne?
According to recent statistics, vintage champagne bottles present amazing value for money. By 2015, rumor has it that the market will grow with as much as 10%. Bottles from 1988, 1996 and 2002 have increased with 10.2% in value over a period of 2 years. Liv-ex mentions that between 2011 and 2013 the champagne index skyrocketed to 11.9%; also, its trading share rose from 1% to an incredible 2.3%.
Back in 2012, the Taittinger Comtes Champagne from 2002 was the 3rd most traded bottle of wine on the market. As investors are starting to lose faith in Bordeaux wines, vintage champagne bottles are winning ground; there’s also a lot more affordable than top Bordeaux wines. A case of champagne is valued at £1,500 while a case of fine wine can easily get to £4,000.
Wine Investments Demand Time And Patience
Even though there are ways of predicting which types of wine will increase and which types will drop, the market can be extremely unpredictable at times. Usually, around the holidays, general prices for top-quality wine bottles go up. It is because the demand is higher and wine aficionados are willing to pay more money just to enjoy their favorite bottles on Christmas. If you’re passionate about fine wine and you’re thinking to invest, it’s important to abide by a couple of basic rules.
- Timescale – investing in wine is a long-term business venture. You will have to wait at least 5-10 years before making any profit.
- Amount – as general prices for the finest wines increase, investing in those wines becomes pricier. From a theoretical point of view, you can invest as little as few hundred dollars to see mediocre returns; however, unless you’re willing to go beyond that amount, you’ll never benefit from substantial returns.
- Wine Case Selection – it’s really important to pick the right wine cases. Consult with a wine merchant if you’re not an expert and ask for professional advice just to be on the safe side.
- Selling – this is probably the trickiest part. You can’t start selling unless you get to know the market; once again, you should talk to a professional prior to trading your wine at an auction
- Storage conditions – proper storage conditions for your product are vital; you can store the wine in your own cellar, or have it stored in a bonded, climate-controlled warehouse.
Before investing in wine or champagne, be ready to answer a tricky question – do you want to invest for money or pleasure? Many investors want both; however, they lack patience so eventually they end up with nothing. Fortunately, as long as you’re meticulous and patient, your chances of seeing remarkable returns are a dream that might just turn into reality.
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By William Taylor and WineInvestment.com!