Start investing in wines and whiskeys – values of some labels have skyrocketed in the recent years
When investing on the long-term, it is good to place your money in several types of assets instead of going with only one course of action.
Of course, investing in real-estate or stocks is the first thing that comes to mind when entering this field, but there are a lot of smart alternative ways to invest and you should definitely consider some of them as ways to vary your portfolio.
Good examples of alternative investments are classic cars, stamps, coins, precious metals – such as gold, silver, platinum and others, professional courses or other personal investment or goods such as old alcohol and spirits. Over the past 10 years, investments in aged wine and whiskey have shown a good progress and valuable returns, so it’s worth considering it.
Benefits of investing in tangible goods
As with precious metals, the main advantage of investing in palpable goods such as wine or whiskey is that they are not affected by fluctuations of currencies and help you avoid the effects of inflation. Another similarity with investing in precious metals is that it takes time to get a good return rate so you might not consider it if you need a quick profit. It might take years until the demand for rare wines and whiskeys increases so much that you can profit from selling your investment.
To compare the two, win is a more liquid investment that whiskey. Not in the literal sense, but referring to the market fluctuations, the wine market is bigger and it sells quicker than whiskey. While being harder to sell, whiskey has better return rates and the demand for rare bottles is rapidly increasing from countries like China or Japan, that have overheated the market during the last year.
Rare wines and whiskeys – an investment with great potential
As the demand grows, the rare whiskeys and wines become even rarer, since you cannot adjust the production instantly to meet the demands, as with other commodities. The older the bottle, the better: even if you don’t have a high quality scotch, if it’s old its value increases with each year. For wines, the best ones to invest in are produced in limited editions and the great difference between the increasing demand and steadily reduced supply is going to make this asset more valuable over time.
Another very important thing to consider if you decide investing in aged wine is how to store it. You can ruin all your investment and render the bottles worthless if the storing conditions are not proper – this would be the greatest risk this type of investment poses. This is why people who invest in wine are usually already collecting them and have the proper knowledge to recognize valuable brands and to know how to properly protect their investment.
Storing – the key to boosting profits when investing in whine and whiskey
For storing wine such as Margaux wine, Bordeaux and others, you can use the services of professional warehouses that will provide the proper environment for the bottles: controlled temperature and humidity, ideal light conditions and other conditions carefully regulated. It will also be wise to insure a valuable collection in case of accidents.It is also advised by the experts to only go into wine or whiskey investment if you love drinking them. It will be much easier for a passionate individual to go through all the hassle of gathering information, searching for the most valuable bottles and keep them safe for years to come. Some say that you should always buy wine or whiskey that you love, in case the prices are horrible you can always drink your investment.
Investing in wine or whiskey is a great way of diversifying your portfolio, but it comes with a lot of time investment too and you will need to research a lot or employ experts to do it for you. The return rates can be however motivating and it can offer you a great way of learning and spending your time.