So why do people invest in wine?
There are some unique fundamentals of wine that lead to its appreciation in value and to the special, often emotional attachment that people have for this investment.
The product improves over time - With very little effort on the part of the owner, investment quality wines inexorably improve, unlike most other investments. Imagine a piece of real estate getting better without any investment in maintenance or upgrades!
The quantity declines over time - Just as inexorably, the quantity of a particular wine declines, making it dearer without any effort on the part of the owner. It's almost as if all publicly held companies regularly bought back more of their outstanding shares then they issued.
There are alternate avenues to liquidate wine. Almost every metropolitan area hosts one or more charity wine auctions. Many local philanthropies also welcome fine wine as a key part of general auctions they hold. There can be some good tax benefits, and of course the satisfaction that comes from donating. Depending on your states' laws, you may also find a local wine distributor, retailer or restaurant that is interested in purchasing your wine, especially if you can demonstrate that it has been well stored. There's even a somewhat active (if quasi-legal) wine barter market. Trade a bottle of old wine for a case of new wine? How about for a fine meal? How about trading a 1989 for a 1990?
Wine collecting brings you in touch with some interesting people. I've worked closely with folks in high tech, in stocks, in real estate and in the wine trade. There's no comparison. Wine professionals and lovers tend to be a very warm, friendly group, into the finer things in life without the pretension. And wine events, be they dinners, auctions, tastings or picnics can be some of the most memorable of one's life. When was the last time you really enjoyed a stock investment seminar?
The product brings pleasure. What other investment truly creates pleasure? A wine collection has been described as "uncashed paychecks". Wandering one's wine cellar can bring the pleasure of anticipation of great wines to come and joyous memories of great wines that were.
And if your investment doesn't go up in value, there's one more way to liquidate it and get you money's worth. Pop!
Top Ten Reasons to Invest in Fine Wine
10. You actually have a good chance of making money.
9. It's something you can hold and caress in the mean time.
8. You get pointed at when the waiter offers the wine list.
7. You have a good reason for going down to a nice, quiet, cool room with a special person (or by yourself) any time.
6. You're not drinking too much wine, you're checking your investment.
5. You always have a housewarming or birthday gift ready at the spur of the moment (watch out for this one!)
4. Wine events are the most fun you've had since your seventh birthday party.
3. The quality of the food you eat seems to be improving.
2. You seem to be celebrating more often.
1. It tastes absolutely FANTASTIC.
