Investing In and Storing Fine Wines, Some Important Considerations

Let us assume you have taken the pleasurable decision of investing in fine wine for the longer term, rather than purchasing bottles for immediate consumption.

Wine can become an asset class in its own right! This method of buying potentially great vintages is a cost saving which will show a good return over the longer term.

Interestingly enough investing in wine has the advantage that, providing you are a private investor and not in the trade, is considered a ‘wasting asset’ and therefore exempt from both income and capital gains tax.

Also providing you keep the purchase invoices, inheritance tax is only liable on the original cost.

Datasheets

Click the link below to download the detailed CAVE4wine datasheets

All datasheets are in Adobe Acrobat PDF format. Please download the free reader from www.adobe.com

Storage is all Important

But be aware, keeping wine for future sale, especially wine of investment quality it will have to be stored correctly, i.e. balanced temperature, correct humidity, out of light and free of vibration.

This can be done in your own cellar providing it meets these criteria. Storage at one of the well-known merchants is also a possibility; this will cost approximately £8.00 to £12.00 per case per year. Most merchants will only store wines purchased from them, but it does have the advantage of provenance when you decide to sell the wine.

There are specialist storage companies such as LCB and Octavian where your wine is recorded and stored correctly. Whether you buy the wine en-primeur or purchase wine already on the desired list, always keep the purchase documents, and if in OWC (original wooden case) do not open it will reduce the value!

Choosing Well Means Safe Investing

When choosing investment wines in general, it is safest to stay with the well known wines from France.

Italy provides interest with the wines from Ornellia, Tignanello and Sassicaia.

There are others but it is strongly recommended you take advice from an established, reputable merchant in selecting the wine and year, if you get it right the investment can very rewarding. Remember the demand for the best wines usually outstrips supply.

If you intend to pursue an investment in wine have a look at www.investdrinks.org

The Real Pleasure of Home Storage

Storing wine in your own cellar can be much more fun; selecting the wine for a particular meal can become a most pleasant ritual. Many cellars are designed with a tasting table or an adjoining room where tastings can take place with friends.

Storing wine at home can be as simple or as complicated as one wishes.

Even a cheap bottle will improve with a few weeks of resting in a stable temperature, try decanting a wine and compare with the same from the bottle, you will almost certainly be surprised at the improvement.

Here at Bacchus Cavovin we have had many years of experience helping customers right across the UK establish their own cellar.

With our wine knowledge we have built unique storage solutions to fit in with their personal needs and cleverly fitted into existing buildings, cellars or new constructions. Have a look at the photos on the site and imagine your own private cellar waiting to welcome you and your friends!

And remember I am here at the end of the phone to offer advice and suggestions

Sincerely

Roger Gillet