Investing in fine wine sounds like an exciting option. However, most people are either unaware of the concept or do not know enough about it. As a result, there is often a lot of confusion around wine investing, and cluelessness abounds plenty.
Even more interestingly, most of these concerns are plain myths swirling around since the days of the earliest vineyards. If you’ve also fallen victim to one or more of these myths, this article is just the learning ground for you!
Below, we have listed the top five wine-investing myths that are costing you money!
1. You must be rich to invest
Gone are the days when wine investments were only for a certain section of society, lie the ultra-rich. These days, almost anyone can invest in wine, irrespective of their age, demographic, or social standing.
Talking about barriers, storage was one of the primary problems stopping people from investing in wines. Residential wine cellars were expensive; if you did not have money lying around, it was impossible to imagine becoming a wine investor.
However, today, wine investing platforms take care of storage, shipping, authentication, and insurance for you. In fact, you can build a well-diversified portfolio with just $5,000 to $10,000!
2. It’s Bordeaux or Bust
Almost all wine enthusiasts and historians will know that Bordeaux once had an indisputable stronghold on the wine market, with no competitor even coming a close second.
However, things have changed now, and Bordeaux accounts for less than 45% of the total trade in terms of value. Recent years have seen the power locus shift to regions like Piedmont and Tuscany.
In fact, you will be surprised to know that Tuscany Champagne and California have successfully taken over Bordeaux. Hence, this myth doesn’t stand true anymore.
3. Fine wine will make you rich quickly
While investing in the best white wine, fine wine is an excellent option to start your wine investment journey.
it isn’t magic! As much as everyone wants to become rich overnight unless you’re investing in cryptocurrency, it usually doesn’t happen.
You will have to patiently wait for seven to eight years before your money gets doubled. However, rest assured that you will get handsome returns; fine wines are remarkably consistent market performers.
In fact, it was the third-best-performing alternative asset over the last decade.
- Rare whisky – 478% return
- Vintage cars – 193% return
- Fine wine – 127% return
- Handbags – 108% return
- Watches – 89% return
- Coins – 72% return
- Art – 71% return
- Jewellery – 67% return
- Coloured diamonds – 39% return
- Furniture – 22% return