This year has been a difficult one for investors across the globe. The COVID-19 pandemic has plunged the world into economic uncertainty. Stock markets are down, and many are predicting a recession, amongst other consequences, as the global economies struggle to recover from the impact of the virus. Spending is down, supply chains have been disrupted, and few industries will escape the ramifications that the lockdown procedures are likely to engender. Given all this, there is much uncertainty facing investors going forward, but fine wine may represent a safe haven for those who choose to invest now. First, let’s briefly examine the current global situation and then discuss the advantages that fine wine has over traditional investment avenues such as equities.
When it comes to investing in fine wine, the storage process is just as important as selecting the correct vintage to begin with. We all know the phrase ‘aged like a fine wine’, but there is more to the process of aging then simply buying the wine and waiting. Correct aging will increase the quality of wine and will help to add considerable value over time. Conversely, incorrect storage may render an investment ultimately pointless; if wine spoils it can dramatically reduce in value, regardless of its age or rarity.