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The City folk I meet at tastings often ask how wine consultancy works.
Over a long lunch at The Ivy we devise a cellar plan for the next years. Nothing is ever bought in single cases: A cellar is not just for very expensive wines. For having ascertained your favourite producers, you will have multiple vintages of your favourite wines and be exchanging two cases of the for four of for the same price. Now we buy the vintages whose overall style and character we prefer.
Burgundy is the best example — for terroir lovers, for Pinot lovers, for extreme ripeness, for example. In Bordeaux we divide years into keepers; , , and drinkers; , , They will be cheaper but are categorically NOT bad vintages in the way that so much was from Bordeaux in the s. Other vintages; , , , are somewhere in the middle.
The best wines from these offer good investment returns also. For one, tangible assets tend to carry a lot of risk: If you're not lucky, you'll buy something that's hard to sell aka illiquid , that's easily damaged or destroyed, or — if you're really unlucky — that turns out to be fake. Plus, funds offering diversified exposure to pleasure assets have only been around since or so, and are thus relatively untested.
Still interested in trying to make a quick buck from an investment in collectibles? Here's what you need to know. Aside from upkeep and insurance, the main problem with pleasure-asset investing is the barrier to entry: You need a lot of money to even get started. People buy investment art mostly on the basis of name, More said, with most money going to a handful of artists' work.
Then again, some argue wine collecting could get easier as enthusiasts shift away from ultra-pricey choices: As for cars, the barrier of entry is higher. Supercars typically fetch hundreds of thousands of dollars at auction, if not more — not the kind of money people typically have lying around. But there certainly can be upsides if you can afford the investment.
The most adept of investors try to keep their passions in check, said Tsai Capital founder Christopher Tsai — one such investor who has amassed a famous collection of works by Chinese artist Ai Wei Wei. That's a huge appreciation in value that Tsai got to enjoy, though knowing exactly when a deal is smart can be tricky, he said.
So the stars have to align. We're looking for downside protection and upside potential.
On its sale your merchant will take commission, typically 10pc. New bond pays 7pc in cash — or 10pc in wine. Connect with our Community Find us on Social Media. Octavian Vaults are temperature-controlled, robustly secured and, perhaps of equal importance, fully insured. But the wine market has changed.
And the way to achieve that Of course, even that definition can be fairly subjective. And other art investors have shared different philosophies about and reasons for investing.
In other words, art doesn't necessarily lose its value when the stock market does. But art prices held steady during the financial crisis, and they actually fell in the subsequent rebound. A lack of correlation is a good thing for diversification.