Fine Wine Gifts Make a Good Long Term Investment
Buy Premier Cru French Wine, a Unique Gift and Low Risk Investment
Nov 11, 2009
Looking for an extravagant wine gift that also offers great investment potential? This article looks at how investing in fine wine from the top vineyards in France could be the perfect gift for a special loved one.
En Primeur Wine Gifts
Imagine being able to drink a bottle of Château Latour or Mouton-Rothschild from a private investment cellar at a fraction of the price charged by top restaurants around the world; or watching an investment grow and grow as limited stocks of fine French Bordeaux drive prices upwards. All this is possible by purchasing fine wine en primeur, otherwise known as premier cru, and holding the “stock” for at least five years. Whether the investment increases in value or not, the ultimate prize is sitting down to enjoy some of the finest wine in the world.
Fine Wine – A Good Long Term Investment
Fine French wine is a solid investment not just because it is still the wine experts’ favorite region but because it is produced in limited quantities; as demand always outstrips supply, prices are virtually guaranteed to rise and at a far better rate than most other stocks. For example, a portfolio managed by Premier Cru, a UK based wine investment company, produced a 21.9% return between July 2005 and September 2009, way in excess of any returns seen by either The Dow Jones, the FTSE 100, the Hang Seng or the Nikkei.
The best way to purchase fine wine from France is to buy it en primeur in the summer following the grape harvest. Wine is matured at the vineyard in oak barrels for 2 years then bottled and shipped to the buyer for storage in a climate controlled environment. While fine wines take around 5-7 years to mature enough for drinking, most connoisseurs prefer to wait at least 12 years before opening a bottle of vintage wine. The gift recipient will therefore have to wait some time before enjoying his/her gift but can enjoy the investment growth in the meantime.
Use an Investment Company to Buy Fine Wine
As wine merchants tend to snap up most of the best wine before it has even been put in the barrel, the novice will need to consult an expert. There are many companies offering expert advice but most charge an up-front fee to act as wine buyers, often a large percentage of the buying cost.
An alternative is to use an investment company which specializes in fine wines and charges fees based on the performance of the portfolio; as the stock rises or falls in value, so does the income of the company, a great incentive to do the best job for the client and purchase a fine wine portfolio that will provide an excellent return on investment.
Vintage Wine Gifts
When considering a fine wine investment as a luxury gift, it is a good idea to include wines from both the top French houses as well as some of the lesser known vineyards. This will ensure a more diverse portfolio across different price points and an opportunity to sample some wines much earlier if desired. A bottle of Château Cantermerle, for example, will cost 80% less than a Mouton Rothschild and will be ready for drinking at least 10 years earlier.
Make a Fine Wine Investment for the Perfect Gift
Give the ultimate luxury gift to a wine lover, a unique portfolio of French fine wine, a high demand, low supply long term investment and one that can be enjoyed by the recipient to the full, regardless of whether a profit is made.
Related Articles
Also of interest may be Wine Gifts for Wine Lovers, How to Make a Fine Wine Investment and Best Ways to Invest in Vintage Bordeaux Wine.
Sources: Premier Cru Fine Wine Investments Ltd
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