I want to start a wine collection

Loobz

Hey,

I want to start collecting wine but have no idea what to look out for. I dont really want to spend a fortune but would like to buy wines that would gain in value over time. Am I wasting my time/money i.e. is this just for people who are prepared to invest lots of cash?
So, If people have some ideas, spread the love.

NB> I have no experience in this area at all. All help welcome.

The Sweeper

My short answer would be that there are far better ways of making a quick buck than collecting wine. Unless you enjoy drinking it, want to study it, know how to store it and have some knowledge about it, you'd be better off with something else. It's too broad - and opinionated - an industry for me to just be able to say "buy a case of X and lay it down for five years, you'll make a fortune".

Do you like wine, or are you more in it for the money?

The Hill Billy

Firstly - I can't offer you any advice as to what wines to invest in.

However, as you've admitted that you know SFA about investing in wines - I'd advise that you speak with a few top quality wine merchants who may be able to advise you as to what to purchase with a view to a decent return on investment. This will depend on what you are prepared to invest now, how long you plan on investing for, etc.

For example, if you want to make a return within 2 years you would probably be best to invest in wines that will be at their best in 2008/09. If you are prepared to hold on longer for a return you will probably be advised to buy wines that will mature later.

Finally, have you given any consideration to how you are going to store the wines you buy?

Best of luck!

Loobz

I like wine, red mainly. And not the stuff that tastes like vinegar. Something fruity and sweet (not sickly sweet). No idea how I would store the stuff. I presume on a wine rack in a kitchen is no good?

The Hill Billy

Loobz wrote:

I like wine, red mainly. And not the stuff that tastes like vinegar. Something fruity and sweet (not sickly sweet).

Are you planning on only investing in red wines that you like the taste of? Your personal taste in wine should have no bearing on what you would invest in. It would be like someone who wanted to invest in an airline & saying that they'd only buy Aeroflot shares coz they like Russian stewardesses.

Loobz wrote:

No idea how I would store the stuff. I presume on a wine rack in a kitchen is no good?

The temprature fluctuations wouldn't do the wine any favours. The biggest pitfall though may be the temptation to lash into your investment over a post-pub beef curry & fried rice with prawn crackers some Saturday night.

Speak with a wine merchant or at the very least read up on the subject before you start buying Blossom Hill by the crate.

EDIT: Just found this. It may help you steer clear of some of the wrong wines to invest in.

bigears

I remember reading a little about this last year but I never followed it up. What I can remember is this:

If you are interested in investing in wine, as against drinking it, you will probably want to have it stored for you. The main advantages of this are:

1. You don't need to pay to have it delivered
2. You only pay duty when the wine is sold
3. It is stored properly at a bonded warehouse in ideal conditions, away from prying hands, yours included
4. They can help you get a buyer at the right time.

As advised a good wine merchant can advise on wines to invest in. As with any other investment you will have high risk high return investments, blah, blah, blah.

One last thing, I believe if you're going down this route then it may be best to look for warehouse storage in London as it is the closest 'major' market.

The Hill Billy

@ OP - This is the text of an email sent to me by HG Wines (info@hgwines.co.uk | +44 (0) 20 7553 9844) that may be of some interest:

HG Wines wrote:

As all collectors, buyers, drinkers and lovers of good Bordeaux know it is not often that the above statement can be used, but we would like to draw your attention to the 2001 vintage, that we believe offers fantastic value for money.

The launch of the 2001 vintage was an almost ‘non-event’ after the frenzy of the ‘millennium’ vintage. A lot of investors had filled up with the 2000’s and the prospect of buying big on the less opulent 01’s seemed less appealing at the time – even though the prices were incomparable.

At a tasting of the 01’s at the beginning of the year we noted that the wines were beginning to show the first indications of their true potential. The smaller Chateaux & the second wines of the ‘big names’ were about six months shy of opening up into very classical, terroir driven approachable examples. The top ‘names’ and growths were showing at least another six months on top of this – but the potential was still evident.

As we write the prices are slowly beginning to creep upwards, so now is the ideal time to buy some drinking and interesting, traditionally styled Claret. A good example is the wine from Lafite Rothschild. The 2001 is currently below the £1900 mark for a case of 12 (all UK taxes included). The 2000 sits at about £6500 mark and the 2003 just below the £5000 mark. Now we are not suggesting the 2001’s are comparable to these two unique vintages, but the wine is just beginning to open up and will prove very rewarding over the next few years and at a snip of the price.

We’ve selected a few of the choicest offers available as a good representation of the vintage and these can be viewed at our Offers & En Primeur pages by clicking here.

Some quantities are severely limited.

There are also a couple of other seasonal offers on this page – the most exciting of which is an offer we’ve had from Chateau de Roquefort for their Cotes de Provence ‘Les Mures’ 2004. Proprietor and wine maker Raimond Villeneuve has called this the best ever Les Mures from the property and asked us to spread the word. He has given us a limited supply at a special price – so here it is at £6.80 per bottle reduced from £8.15. It’s an amazingly complex wine with a lovely blend of dark, spicy, herby qualities and juicy cassis ripeness. Perfect for accompanying seasonal autumnal food, but also tantalising drinking on its own.