Sourcing The Finest Investment-Grade Wine

February 9, 2024

Many seasoned wine drinkers understand and appreciate the value of high-grade wines. With the increasing popularity of wine worldwide, more connoisseurs have emerged, looking to collect and sample only the best bottles of vino. The surge of interest has also driven up prices of rare bottles, and contributes significantly to wine becoming an investment-worthy commodity.

However embarking on wine investment is not as straightforward as it might seem. While an understanding of the basics of wine can be useful, ultimately wine investing is a skill all by itself. To help you understand how to identify investment-grade wines, we’ve put together a brief guide that covers the main points.

Learn More: How To Get Started In Wine Investing

1. Great Wine Estates

Wine has been consumed since ancient times. Over the centuries certain regions and vineyards have been identified as producing consistently great tasting wines. Places like Bordeaux in France, Lombardy in Italy, and Napa Valley in California. Wines from these regions often top critics list of the best wines every year and rightfully carry with them a certain level of prestige.

For savvy wine investors, this can be a good starting point to do your market research. There is plenty of material to be found about the world’s best wine estates. Many have a long history and heritage of wine making, but newer vineyards in places like South America, South Africa, and New Zealand are slowly gaining the attention of wine critics. These less established estates could also be tapped for potential investment-worthy wines and have led to the growth of international wine shipping around the globe.

2. Listen To Critics

Wine is extremely subjective. One person’s wine preference might be very different from another. This is where the role of professional wine critics comes into focus. With their years of wine tasting experience, refined palates, and ability to communicate the subtleties of different wines, they are tastemakers and validators whose opinions are highly valued and sought after.

Esteemed critics have built a reputation for themselves and are rarely wrong in their judgements. Their published individual ratings and reviews are a basis for perceived value and serve as a barometer to determine if a specific wine is investment-worthy. Highly rated bottles are likely to rise in value over time as the supply diminishes over the years.

Speculating on wine bottles is similar to investing in any other asset. Research will need to be conducted on the potential Return on Investment (ROI) of any bottle you purchase. One significant difference comes from the fact that wine is “alive” and its flavour profile can change over time. The upside is that for certain wines this actually improves the flavour, but this also means that preserving wine is an important part of wine investment.

3. Understanding Vintage

In the simplest terms, a wine’s vintage refers to the year in which the grapes were harvested. It’s an important criteria in determining the initial release price of a bottle. Vintage is very much influenced by weather conditions and varies greatly. Grapes are sensitive to temperature fluctuations and require a good balance of sun and rain to thrive.

If a particular vintage has been earmarked with a good score on vintage charts, then you should pay close attention. A good vintage is likely to have a high release price and should also do well in the secondary market. A well-regarded vintage that matures well, offers good potential for returns as the supply dwindles and demand increases.

Over the longer term, wine offers attractive returns and compares favourably with other commodity investments. However it requires a keen interest in the subject matter, plenty of up-to-date research, and careful storage.

When it comes to protecting your wine bottles from spoilage, you shouldn’t compromise on quality. The Singapore Wine Vault offers a state-of-the-art facility, staffed by experts, and offers the highest standards of wine cellarage along with international wine transporting services. If you’re interested in beginning your journey in wine investing, reach out to us via our contact us page and our team will get back to you.

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