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Types of Wine for Investment

Some investors buy wine purely as an alternative to traditional financial investments for future re-sale at (hopefully) a profit. Others will buy young wine to store for their own enjoyment as it matures rather than pay vintage prices further down the line. Many investors however will acquire a combination of some for re-sale and keep some for drinking.

As well as the skills and techniques of the winemaker, a number of factors will contribute to the potential investment return of the wine that you choose:

  • Classification by origin or region - the climate and soil of different wine-growing areas play an important part in the wine's quality and ageing potential. Some countries or regions or even sub-regions offer more reliable investments than others for example Bordeaux wines are known to age well and usually produce good investment returns.
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  • The variety of grape from which the wine is produced - wild grapes have evolved over centuries into the vast number of varieties now cultivated. The way vines reproduce means they are susceptible to mutation which explains the wide variety of species today. Some varieties are grown in only certain areas where others are widespread. The same grape cultivated in different soils and climates will produce very different results. Some grapes also produce wine that should be drunk young whereas wine from other grape varieties will improve with age.

 

  • still wines come from a single vintage and the label will tell you the year in which the wine was produced. Fortified and sparkling wines, however including champagne are generally non-vintage as they are usually created from a blend of different vintages. The exception to this rule is in an outstanding year when vintage champagne and vintage port will be made. A good rule to follow for investment is that it is better to buy any wine from a good vintage rather than a high quality wine produced in a poorer year.
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Wine is also affected by the fickle whims of fashion. A highly sought after wine, considered to be 'cool' today could be destined to become the Blue Nun or Mateus Rose of the future.

 

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