Investing in wine - FAQ

Questions and answers

Can I buy investment wines direct from the chateaux?

Unfortunately not yet. The Bordeaux trade has a unique structure, which means you cannot buy the top wines from the people who make them.

The place de Bordeaux operates with the chateaux making the wine, which the negociants buy and then sell on to merchants abroad. These merchants then offer the wines to their customers.

You can buy wines direct from lesser chateaux in Bordeaux although the majority is still processed through the negociant system.

What is 'investment grade' wine

Investment grade wines include Bordeaux classed growths, and several red Burgundies such as Domaine de la Romanee-Conti and La Tache.

Some people will put a splash of Sauternes from the very best vintages and the creme de la creme of Champagnes but the world of investment wine (c.90%) revolves around red Bordeaux.

Why should I invest in wine?

There are many reasons why you should invest in wine...

  • It is considered a wasting asset so you pay no capital gains tax on the money you make.

  • Returns from 'investment grade', mainly Bordeaux classed growth wines have outperformed the FTSE and gold in recent years.

  • The supply of a particular wine from a specific vintage is finite and as people start drinking their wines, the wine that is lying in a warehouse or cellar becomes increasingly rare - and thereford more valuable.

  • It more fun than stocks and shares. And if it all goes pear-shaped, at least you can drown your sorrows with a decent bottle.

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