Wine is a simple product of fermented mashed grapes; however, chosen carefully, a bottle of wine can not only be enjoyed as a fine alcoholic beverage, but as an investment.
It can be difficult to tell what warrants premium value from an average bottle. “What makes one specific wine a small fortune?” “What is the different between a simple grape and a developed one?”
In order to properly decipher an investment, one must know their product. The quality of wine greatly varies due to the climate, soil, age of vines, genetics of the vines, and above all the skill of the winemaker. Since the climate changes each year, every vineyard produces a variation to their final product. While the soil and the genetics of the vines tend to remain the same, the vine itself will continue to age, producing more intense fruit.
Recently, studies by world renowned sommeliers have shown that not all wines improve with age. With a wide tasting of bottles in the upper limit of their age, sommeliers were able to shatter this archaic, oenological myth. Wine requires constant monitoring of the aging potential, in order to determine at which age of maturity the wine should be served. For example, the 1961 Chateau Latour – originally priced at $3 – now fetches an estimated $500, whereas the 1975 Chateau Cissac – originally a $4 bottle – now fetches approximately $15.
With each wine-producing country in Europe attempting to cement their traditions in this procedure, certain vineyards are already recognized as being historic factors in the quality of wine. This qualification system, allows for each one of these vineyards to be rewarded with an instant recognition of quality.
Unfortunately, with vineyards in the United States there is a lack of such classification system, and therefore consumers are forced to decide on their own which producers, vineyards, regions are worth historic value.
Even though price is not a proper determining factor of quality, it is occasionally used as the final indicator. Several aspects have the ability to drive up the price – scarcity, quality, or the name of the vineyard. For instance, in the United States the cost of the wine is the pure indicator of the quality in the bottle.
Rarely considered, but perhaps most important is the type of wine cellar an individual owns. In a passive cellar, this accumulation may not be a possibility, but if the individual utilizes as a plug-in device with temperature moderation, the aging process is much smoother.
Some individuals – in order to by pass this process – will engage in “Futures.” “Futures” refers to the most common way to invest in wines: buying wine prior to it being bottled. This process is more beneficial due to the fact that prior to bottling the demand is low, and the currency fluctuations are high.
In essence, wine is like art. However, unlike art, the moment the actual depletion of the stock occurs, you can drink it.