What makes wine
investments exciting and risky
Investing in wines is a risky business and not for the faint of heart or budget.
But those who understand and can weather the risks, will find this an exciting investment avenue. Global demand for
wine is constantly on the rise, making fine wine an interesting investment option.
| Tips for Wine
Business of Investing in
As is the case with any other investments, wine
investment often involves considerable risks and no guarantees. But investors who are well informed
still find investing in wines an attractive option. One of the reasons for this is that they follow
the reviews from well-known experts on wine. It's not a guarantee of success, but it can be a great
Investing in Wine in
Although investing in wines is considered an
alternative investment, since the mid 1990s it's become more fashionable to invest in fine wines.
Australia is recognized as one of the best producers of fine wines in the world, making it a great
place to consider investing in its wine business. Before you exploit this as a possibility, it's
important to learn some facts about wine business.
Fine Wine as Loan
Can wine be used as a loan collateral? Amazing
as it sounds, it can. But as wine investing is a risky business and with all scams around, this
option carries substantial risks. Some financial institutions in the U.S. are willing to grant loan
in exchange for fine wines. One of the things with wine investment is that even if you have a rare
wine, is the market willing to pay for it?
Start Wine Trading
Trading on a stock market can be a volatile
business throughout the year, even at the best of times. Ditto for investing in fine wine. But if
you have fine wine to spare and want to make a second income, wine trading could be the way to go.
Here are some tips on how you can get involved and where to start with fine wine
Growing demand for fine wines
Recent reports by Morgan Stanley global financial services firm (as reported by
BBC), suggest that global demand for wine in 2013 has exceeded supply by about 10%. This has caused the biggest
wine shortage in the past 40 years. Global wine production was growing until 2004, when it started to recede
despite ongoing demand for wines.
But if you plan to become a wine investor, you must be able to afford losing
money. Scams aside, wine is particularly susceptible to a number of risk factors, such as being perishable,
potential liquidity problems, as well as being subject to market demand, as most investments are. That's why good
wine investment funds always have an exit strategy.
Nonetheless, for those who understand the risks involved and are prepared to deal
with them, wine investment is a very exciting area that can be handsomely rewarding to smart investors.