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Wine

Should We all Be Playing… Stash the cash before the big crash with investments in wine?

In an Economic Climate that’s Reminiscent of the Great Depression Wine as an Investment is Looking Pretty Good…

On a flight back from North Carolina, I read America Airlines’ in-flight magazine. I was astounded (in July) at a story written about the return of an investment of wine. [I thought I carefully stored that magazine, and will probably find it as soon as I post this blog, but I feel compelled to bring this up right now, even though I don’t know where the story is, because there was a great graph that I could share with credit being given to the right person. It’s so timely.

TIMELY: I just explained to a colleague who needed an answer to a question she asked, “Most of these writers will be traveling on their own bank accounts (which are dwindling with every bell of Wall Street and increasing gas prices). This is how we’re thinking, writing, speaking in metaphors right now. And, that’s for all of us, because in some way we’re all economically connected and being impacted by the current economy.

So, back to the thinking of wine as an investment:

From WineSearcher.com:

Wine Investment Essentials:

  • Focus on the top wines from the best vintages. Only a fraction of wines produced worldwide will increase with value if kept.
  • Store the wine correctly and, preferably, in professional temperature-controlled cellars.
  • If purchasing in Europe, buy and store wines ‘under bond’ so sales taxes do not become payable.
  • Take advice from established and reputable retailers and importers country.

If done right, here’s an example of a return on an investment from WineEducation.com’s site:

Wine Education:

“Just how much does a wine increase in value over time? Lets take a look at a 1961 Ch. Latour. On release in 1961 dollars, it cost $3 to purchase. Currently it is selling at auction for approximately $500. This is a return on investment of just over 15% annually for 35 years.”

Food & Wine magazine:

October 2008 just arrived, and I was further reminded by Paul Sullivan’s story, “Is Wine a Smart Investment?” Paul believes that most investors become collectors by accident. Well, I see that point. The bottles that are collecting dust in my house were never intended to collect dust, but I’d have to be an alcoholic to keep up, so I guess I can call that an accident, not by design… But I’m missing the Cru Class

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