Is fine wine a good investment?

October 7, 2008

I’ve recently entered the foray of investing - dabbling in shares of this and that - and what a hell of a time to be starting out, it’s a blood bath out there!

Anyway, despite all the market turmoil, it’s a good time to learn because the lessons you get taught are severe indeed - it’s like visiting the headmaster for whack on the bum in junior school!

Amidst all the chaos I found this string in a chat forum about shares and what was happening to the markets:

Good Morning Simon… by john  on 06 Oct 08:22
I trust you had a great holiday.. 
Re:Good Morning Simon… by SimonPB(Standard Bank) on 06 Oct 08:28
ya, holiday always good - and short. learnt two thing, firstly screw top wine bottles are great. yaya an all, but corks are just a mission, especially after lots of wine . an also discovered a white wine worth drinking, Plaisir de Merle Chardonnay .
Re:Good Morning Simon… by john on 06 Oct 08:31
Oh my I so agree about the screw tops…Also the Springfield Chardonnay is out of this world. There is nothing better than a childed bottle of white, A block of good cheese and and afternoon without children.
Re:Good Morning Simon… by SimonPB(Standard Bank) on 06 Oct 08:33
well I always happy to drink red wine, even on hot days. chilled white never really done it for me, but this was naaice. luxury tent in the waterburg an all - I could be a convert, from time to time … an my afternoons are always child free …
Re:Good Morning Simon… by john on 06 Oct 08:34
Don’t rub it in.
Re:Good Morning Simon… by john on 06 Oct 08:35
My wife thinks “luxuary tent” is an oximoron.
Re:Good Morning Simon… by CrownA on 06 Oct 09:37
Hey, we didn’t sign your leave form. That means you have to take unpaid leave.
Re:Good Morning Simon… by SimonPB(Standard Bank) on 06 Oct 09:41
you mean I get paid to drink ? John, well I largely agree with her, but it seems they can do fairly astounding things with a tent…
Re:Good Morning Simon… by john on 06 Oct 09:59
Where were you.. I spent a fabulous couple of days at welgvonden last year..it was pure bliss.
Re:Good Morning Simon… by Up on 06 Oct 10:02
welcome back Simon ,hope you had a good rest. the banks in South Africa have been on the up since the start of July this year ( JSE – Bank index ) do you think that will continue ?

I love it - they cant explain the markets so may as well chat about wine!

It got me thinking - is fine wine a good investment tool?

The short answer is yes - take a look at the below graph which illustrates potential returns on a selection the world’s finest wines:

Now obviously you would have to get your hands on the right brands and pick some potential winners according to vintage reports, weather outlooks and wines attracting some ’buzz’ from acclaimed critics.

Well to get all that information look no further than the following link:

The Liv-ex 100 Fine Wine Index

The next thing you will need to do in order to safeguard your investment will be to find suitable cellaring conditions and someone to buy the wine for you (and ship it too).  

Well in South Africa I’d look no further than The Wine Cellar which is run by the incredibly knowledgeable and affable wine anorak Roland Peens. I’ve been there, looked at their facilities and tasted wine there  - I wouldn’t blink an eyelid trusting them with my wine.

I’m certainly going to look into this as an investment option - if anyone has any advise  please share it in the comments section! 

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