The fine wine market is becoming extremely attractive to modern investors, even those who know relatively little about it. According to Liv-Ex, fine wine assets outperformed both the FTSE100 and Dow Jones in the first quarter of 2022, and this is just one of the reasons why so many investors are dipping their toes into this market. Most of these new investors are on the lookout for wine investment companies that sell fine wine online.
But, there are many wine investment companies to choose from, so how do you know which is right for you? In this guide, you’ll learn how to sift through the options to find the one that’s best for you and your wine.
What a Wine Investment Company Can Do for You
Wine investment services are more extensive than they were even just a decade ago. The most experienced companies are committed to offering the best wine on the market and providing other services, like storage, that investors need to manage their collections. Here are nine essential benefits you’ll get from working directly with a wine investment company:
- You have access to a large marketplace of wines to diversify your portfolio. The best wine investment companies sell the most in-demand wines to investors, like 2004 Louis Roederer Cristal or en primeur Bordeaux.
- You can invest in wine futures or pre-arrivals. These are wines that haven’t been released on the market yet, so you’ll be able to invest in them at the lowest possible price, and long before other, less knowledgeable investors are able to access them.
- Some companies provide extensive wine education through a blog or some other resource. You can find information on market trends and historically well-performing wines, giving you the knowledge you need to get the best possible return on your investment.
- Once you have a portfolio of fine wine, the best companies offer specialized apps to help you keep track of your collection and find an ideal time to sell.
- Experienced wine investment companies also offer secure storage services to investors so you don’t have to manage a home cellar. This also protects the wine’s provenance (the proven chain of ownership). Buyers like to see that a wine was stored professionally throughout its lifetime and will often pay a premium for these wines.
- If the company provides consignment services, they can help you decide on the best price for your wine based on proprietary market data and years of experience selling fine wine.
- The top companies have a large network of buyers ready to buy wine from investors, so you can turn a profit sooner.
- Once your wine sells, the investment company may handle all of the shipping details, ensuring your investments are protected from point A to point B.
- All of these services are available under one roof. This makes investing in wine a more cohesive and convenient process.
To get all of the benefits above, you should work with the most experienced wine investment company. But how do you know whether a wine investment company has on-the-ground experience? There are a few questions you can ask.
Finding the Best Wine Investment Companies
Not all wine investment companies are as experienced as others. This industry has attracted more investors than ever in recent years, and as a consequence, it’s also attracted new investment companies hoping to corner the market. However, the wine industry is all about connections and hands-on expertise. Investors will generally get more value from working with a well-established company with decades of experience selling wine vs. a newer startup that has fewer connections and might be working through some growing pains.
To find companies with experience, here are a few questions you can ask:
Questions About Buying Wine
- Does the company sell wine, and how much is for sale?
The best companies have hundreds of investment-worthy wines on their website. Investment-worthy wines are age-worthy, valuable, rare, and in-demand.
- Does the company offer wine futures or pre-arrival sales?
These are some of the most profitable wines for investors, and only the most experienced companies have the connections necessary to offer the most sought-after futures.
- Does the company inspect wines for quality and authenticity?
You’ll want to know that the wine you’re buying is authentic and undamaged so you can make a return on your investment in the future.
Questions About Maintaining Your Investments
- Does the company provide safe professional storage services?
The last thing many new investors want is to build a home cellar for their wine. The most experienced companies take care of this detail for you, so you can focus on profits.
- Will the company insure your investments?
In the event of a natural disaster or other unforeseen setbacks, you should have comprehensive insurance to protect your investments.
- Will the company inform you when it’s an ideal time to sell?
Some companies will suggest ideal sales windows based on market data and staff expertise. You may also be able to keep track of the wine’s peak drinking window through an app.
Questions About Selling Your Wine
- How many people are in the company’s network of buyers?
You want to find the widest possible audience when it comes time to sell your wine. Look for companies that have a network of at least 30,000 potential buyers.
- Does the company maintain strong relationships with serious wine collectors?
The most experienced wine investment companies have a network of private clients who rely on their expertise to find rare new wines to add to their collections. This is a channel not all investors have access to, and it may lead to higher returns.
- What does the company charge for each sale?
The best wine investment companies allow you to sell wine on their marketplace in exchange for a percentage. With Vinfolio, our fees go as low as 15 percent and up to 23 percent for more tailored, white-glove service, depending on your needs.
If the wine investment company you’re researching has satisfactory answers for all of the above, it’s a sign that they’re experienced enough to give investors all of the tools they need to successfully invest in fine wine.
How To Invest in Wine for the First Time
The best wine investment companies combine decades of experience with modern innovation. They have the knowledge that only comes from hands-on experience working directly with wineries, going to tasting events, and auctioning off thousands of bottles. They use this knowledge to create user-friendly apps and online marketplaces designed with the first-time investor in mind.
This is why, if you’re looking to invest in wine, you should consider Vinfolio’s services. Vinfolio runs a popular online marketplace where investors and collectors can find the most sought-after wines in the world. With decades of experience, the company’s strong connections in the industry give investors access to the most desirable wine futures and pre-arrivals, not to mention ultra-rare wines. Investors have the choice between two different sales options:
- Self-Service: Investors have full control over buying and selling their wine. And with Vinfolio and one of the lowest fees in the industry at 15 percent, this is a popular choice for investors looking to resell their wines for a profit.
- Consignment: Investors have access to expert pricing recommendations and special marketing channels not available to investors outside the network. Vinfolio offers this service for 20-23 percent of the total sale.
With on-the-ground experience and flexible options designed for every type of collector, Vinfolio is the best choice for those looking to invest in wine for the first time. To get started, contact our expert staff today.
