Wine Collecting Is One Of The Best Financial Investments You Can Make Right Now

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The wine market is a funny thing. It is essentially a luxury product and yet millions of bottles are produced each year.A few people’s personal taste can mean life or death for a wine and they can flow in and out of popularity almost weekly. One thing is true though, there are a lot of people making a lot of money in the wine game and now is a pretty good time to get involved.

The prices of fine wines has been on the increase for the last couple of decades. As more refined production techniques and better storage capabilities allow for high class wines, so the prices for those wines continues to increase.Jamie Richie, Sotherby’s resident fine wine expert stated that “Prices had risen to nearly unsustainable levels last spring”. However, now that the recession is upon us, the prices of these exclusive wines are coming within reaching distance. March 2009 saw a relatively big downturn in prices averaging 1.2 percent according to Liv-Ex 100, the index that tracks the top 100 collectable wines. This is trend that experts expect to continue for while and can in fact be seen throught the wine sector, from wine production to the sales of general wine glasses.

A bottle of 1978 Montrachet Domaine Romanee-Conti recently sold at auction in Chicago for just under $4,000. $23,929 was the price paid for that same wine only a couple of years previous at Sotherby’s auction. This sharp decline means that if you’ve ever wanted to start your own wine collection, either for your own consumption or as an investment, it will soon be the right time.The lowest point in that the market will face is predicted to be somewhere towards the end of the year. It should then be able to start gaining some speed again.

Here are some key pieces of advice from Joss Fowler, wine investment professional from Berry Bros & Rudd. He says that the best bet is still Red Bordeaux as this always ages well. Also, play it safe and get the best wines your money can buy from the best vintages. Stick to this adage and you’ll be filling up your pretty champagne flutes sooner than you think.

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