The world’s most expensive private wine collection sold for a staggering $29.8 million at a Hong Kong auction in 2019. With such vast amounts of money at stake, it’s not surprising some savvy entrepreneurs consider collecting wines for investment purposes.
But, is it easy to learn how to start a wine collection? After all, you’ll want to be sure you only spend as much money as you need to, while also getting the maximum return on your investment. The good news is you can follow some straightforward hints and tips to get started with this potentially lucrative hobby.
Let’s dive in and learn more about collecting wines as an investment.
Set a Budget
When investing in wine, it can be tempting to buy expensive wines in the hope of selling for the bottle for a large fee in the future. By setting a budget, you reduce the risk of overspending when an opportunity arises. Not all wines have to be expensive, and you can visit the Wine Dispensary to find excellent bottles at reasonable prices.
Keep an Inventory
You won’t want to read the label of each bottle every time you check what wines are in your collection. If you keep an inventory list on a spreadsheet or written on a sheet of paper, you can quickly identify which wines you already own.
Keeping an inventory can also be useful for creating a varied collection. You can include information such as wine regions and the wine type in your columns, and then buy a bottle with different characteristics next time you’re making a purchase.
Consider Your Wine Storage Options
If you buy a fine wine, you’ll want to store it in optimal conditions. You may already have a cool and humid environment in a room in your home, but you could also consider using a storage facility to house your investment.
Save the Documentation
Ensure you keep a record of wine purchase receipts, seller details, and auction catalogs. These details could be important when selling your collection and help raise the price by a significant amount.
Have Your Wine Collection Appraised
Wine collections can fluctuate in value, so it could be useful to have regular appraisals. You could potentially identify the peak time to sell some or all of your collection rather than missing out on a profitable sale. Knowing the value of your wines is also vital when insuring your bottles.
Now You Know How to Start a Wine Collection
When learning how to start a wine collection, you can become fascinated with the many different available varieties and their financial values. You may want to set a budget to reduce the risk of spending too much money and have a suitable storage facility to help protect your investment. Remember to keep an inventory, and place your wine-related documentation in a safe place.
Before long, you could have built up a valuable wine collection!
Don’t rush off to start collecting wines just yet, first be sure to check out more great posts in our Deals section.