Tuesday 19th of June 2012

When is Wine not Liquid?

April 19 2012
I never have any money to invest, but some do. Quite a considerable amount of people have invested in fine wine over the years, often with relatively unknown companies who may promise great future outcomes for something they may never see, but trust exists in a cellar somewhere.

It is unfortunate that a lot of these companies are going into liquidation, which ironically is the nearest to liquid some investors will ever get as their assets were probably thin air.

An estimated 50 UK wine investment firms failed in the last four years according the the BBC, with maybe over £100m lost.

If you like wine, drink it. If you want to invest in wine then it is high risk, there are too many factors that can go wrong with the investment. Fraud and mismanagement obviously being the major ones in this case. Speculating on en-primeur wine (young 'pre-release' wine only tasted in the barrel) is another pursuit best left to wealthy experts.

The only speculating I do is that the odd bottle of claret may mature favourably in my cellar over a year or two, unless it is drunk in desperation first due to a lack of stock (which is mostly the case).

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