Is Wagering on Wine a Trickier Bet than It May Seem?
New reports on business, investments and wine reveal that wagering on it is way trickier than it might seem for those who do not have the insights of this business. Moreover, the prices of the finest Italian wines have gone off the roof this year. On the other hand, Bordeaux prices have gone lower than the usual while Champagne keeps the costs at its usual range.
Wines from the Rhone, for example, have also been cheaper than before but who knows how long might this be so? Such changes in prices and the constant shift in value for general investments makes wagering on wine trickier than ever. Let’s discover more details about it below.
The Price of Fine Wine Reveals
A prestigious report published this year by economic professors has revealed interesting insights on the overall costs of really fine wine and how it should be considered for investments.
The report is entitled The Price of Fine Wine and has been done by a prestigious professor from the London Business School in association with HEC Paris.
In case you are one of the famous wine cellar owners that were simply waiting for their investment to pay off big this year, you might want to do your research starting with this report to gain new insights on what you should do next.
Furthermore, you should know that the prices of fine wines have beaten the inflation by 5.3% on average per year in the last decade.
Great Deals on the Finest Wines
Moreover, many potential wine investors may also be hoping to make some great deals on fine wines from Chateau Lafite this year. In the last few years, the overall tendency in terms of wine costs has been related to a booming increase.
Some say that this is all due to the high demand coming from the wealthiest Chinese wine investors. However, in the last two years, things have not been so set-upon the increasein terms of prices as before.
Some periods when the costs seemed to crash down have also been registered. Specialists attribute this to the overall downturn in emerging market stocks. Who knows?
The reasons are usually much more varied than just that. However, the good news is that you can still hope to find great offers on fine wines this year. The studies make these expectations seem pretty realistic at the moment.
Important Factors to Bear in Mind
Even though costs seem to be highly beneficial for your new wine investment this year and we recommend it, there are still important factors that you should bear in mind before getting anything done in this regard.
First of all, you should know that investment returns in the case of fine wines have not always been as consistent as investors might have expected. Wagering on wine is always a lumpy adventure, but usually, the efforts pay off in the end.
Moreover, do not forget about your estimated storage and insurance costs before making the business plan. Wine investments can be like gold mines but only to those who have a clear business plan in mind and focus on long-term results.
You will not win a fortune after the first year. However, in 5 years or more, you will already have a clear picture of how valuable your wine cellar investment has become.
Finally, with wine investments you are never on a standard business path. It is simply a business that will prove to be as refined as fine wines are so you need to find your way around the industry to make it worth your money and time.
High-end results as compared to initial investments are totally worth it in most cases, but you should be ready to have no cash flow for some time before these ensure the proper payoff.
The Bottom Line
All in all, taking latest reports into account and the opinion of wine specialists, we can say that investing in wine is still a good idea. Such wagering does not ensure immediate results but offers investors the chance to win big on the long run.
Better to wait more and earn considerable amounts of money from your investment than to just accept low short-term earnings.
Category: Wine Investing
