Wine as an Investment Option

Red wine pouring in glass on background

Did you know that investments in wine have been outperforming investments in traditional stocks? The Liv-Ex Fine Wine 100 — a benchmark index for wine performance similar to the S&P 500 for U.S. stock performance — has risen by 270.7% over the past two decades. This is 8 percentage points higher than the S&P 500 over the same period.

When it comes to determining the value of wine, there are multiple factors to consider:

Vintage: This term refers to the year in which wine was harvested in a region. There are many conditions, such as weather, that contribute to the quality of wine produced in any particular year. It’s important to know what years are good for production of specific types of wines.

Reputation of the wine producer: The wine’s brand is a key factor in determining its value. Wines from well-known producers will be more valuable.

Aging potential: Some wines will age better than others. Those that age well will outperform those that don’t. Factors that contribute to aging are the type of grapes, acidity, and tannins in the wine.

Wine scarcity: A rare wine or wine produced in small batches will increase in value over those that are readily available.

Wine critics: Finally, it’s important to keep in mind what wine critics are saying about a particular type of wine. This will impact its value!

In addition to these factors, don’t forget to consider insuring your collection of fine wine! Insurance will provide peace of mind that your valuable collection is covered in the event of an unexpected loss.

Collectibles Insurance Services was founded by collectors, for collectors! Homeowners insurance often falls short when it comes to providing coverage for collections, so that’s where we step in. We help insure collections of all kinds — from wine to sports memorabilia, and comic books to toys, and so much more.

Find out what types of collections we insure or get a quote today!

Source:

https://www.forbes.com/advisor/investing/how-to-invest-in-wine/