There’s an investment trend that is outperforming almost all investments on the market at the moment; wine investment. One of the most popular goods to invest in is fine wine, but not all variants would probably fetch as much as Bordeaux wine investments. So is Bordeaux wine your automatic ticket to great profits? It could be, but only if you know what you’re doing.
As with all kinds of investments, planning and research is essential in Bordeaux wine investments. As a retailer of this fine wine, you have to know three basic things. First, how accessible if your main source? Are you getting your bottles directly from the manufacturer or from another distributor? If you’re getting it from the manufacturer, how much is the investment costing you? The distributor might help you save on shipping costs, but how much is he putting on top of the product’s base price? You should know these things in order to workout the profit margins you will have, so it’s very important that you familiarize yourself with prices before you take the leap.
The next thing you have to think about is the cost of storage and distribution. If you’re planning to enter Bordeaux wine investments on a big scale, then you’ll either have to build or rent a wine warehouse that will be able to house your investment to maturity. These are usually hidden expenses that most people going into Bordeaux wine investments forget about and these can eat in to the profit margins.
When it comes to the ratings of the wine, you relax because Bordeaux is constantly rated well and is one of the most popular choices when it comes to wine investment. This means you’ll be selling wine bottles with a fairly stable value. What you do have to think about is the demand for these bottles. While it’s true that the demand for wine generally exceeds its supply, you still need to know when is the best time to buy and sell the different bottles of wine. It is important to pay attention to particular year quality in wine and which vintages will mature well.
Bordeaux wine investments are outperforming commodities such as oil and property. The most recent rise in prices has been attributed due to the recent interest from China in the market particularly with a taste for Bordeaux wine. However in order for the investment to pay off you need to do your homework. The best option is to speak to a specialist in the field that can help you manage your stock portfolio.
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