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While it may not be the first thing that comes to mind when you imagine investment opportunities, incorporating wine into your investment portfolio can be an very lucrative move. Depending on your interests, it could also be an incredibly enjoyable alternative investment space for you to explore. If you love drinking wine, learning about the history and factors at play in establishing successful wine regions, or just prefer a tangible investment, investing in wine could be the perfect opportunity for you.
By investing in wine, you’re not only incorporating something with long-term growth potential into your portfolio—you’re also purchasing something you could decide to enjoy during a special occasion or drink in the unfortunate event that the vintage isn’t performing in the way you thought it would. If you’re considering investing in wine in 2023, you’ll find all the information you need and factors to consider in this complete guide to investing in this unique asset.
Why you should consider investing in wine
While stocks, bonds, cryptocurrency, and real estate all receive a lot more attention in the world of investment, wine is an alternative that is well worth your consideration. It’s an exciting and timeless tradition to tap into—it gives you a thrilling rush when you finally add the vintage you’ve been searching for to your collection, and it allows you to become part of a history and tradition that has been synonymous with pleasure and celebration for many centuries.
But there are more concrete reasons for you to consider as well, including:
- Wine investment returns: With the number of platforms that offer a wine investment portfolio advisor—platforms like Vinovest and Liv-Ex, for example—you can see significant returns on your initial investment. In the last 30 years, fine wine investments have returned 10.6% per year, which is more than the global equities market can boast during that same period. Plus, data from recent financial crises shows that wine is significantly less vulnerable to dramatic shifts within the stock market than other investments.
- Ease of investing in wine: While the stock market requires investors to be skilled in navigating the ebbs and flows of the market, not to mention maintain constant awareness of their investment’s shifting financial performance over time, wine is much less hands-on. Do your research on regions, varietals, producers, and vintages in order to determine which bottles are the most beneficial additions to your portfolio, then put it safely in storage and watch your investment grow.
- Accessibility of wine investment: There are a number of platforms that make it easy to buy fine wines or invest in wine index funds, so you can invest the amount of money you want toward wine and have a wine expert oversee buying and selling of specific vintages on your behalf. With these options, you can choose how involved you want to be and how much you want to learn about wine investment before getting started.
- Investing in something tangible: Putting your money toward wine is an investment in history, tradition, legacy, and the care and management of our natural resources—but it’s also investing in a tangible product that you can hold in your hands and drink if you so choose. While some investors keep their investments in professionally managed storage facilities, you can also keep them in your home and enjoy the tangibility of your investments.
No matter how involved you want to be, the wine investment space has something to offer everyone. Even if you don’t drink wine or have the desire to learn about the history and tradition of the industry, the recession resistance this asset has demonstrated is sure to entice investors. But if the cognitive dissonance of other investment types leaves something to be desired for you, wine allows you to really sink your teeth into a tradition and story that’s sure to keep you interested.
Pros and cons of investing in wine
Every investment has its benefits and drawbacks. Before getting started in wine, here are some things you should keep in mind.
Pros
- It’s an alternative asset that allows you to diversify your investment portfolio.
- Wine has low market volatility and very low correlation with the other, more traditional assets.
- It can provide significant returns, especially for investors willing to hold investments for seven to 10 years.
Cons
- Upfront costs can be high, since many commercial auction houses charge a buyer’s premium that can range between 15% and 20%, in addition to your winning bid.
- Shipping, storing, and insuring wine can also come at a significant price. While the tangibility of this investment makes it desirable, the flipside of that coin is the cost associated with preserving its condition.
- Since investments may not reach their peak value for 10 or more years, if you’re looking for a quick turnaround, wine may not be the investment for you.
In order to determine whether wine is a good investment for you, carefully consider your investment goals, timeline, as well as the funds you want to dedicate to this investment. While many feel it’s a compelling and fulfilling asset, no investment space is a perfect fit for everyone.
How to get started investing in wine
There are two main approaches to breaking into wine investment, and the cost and level of commitment required varies dramatically between the two.
First, you can choose to buy wines at auction through platforms like Sotheby’s, Christie’s, or Acker Merrall & Condit, insure them, and store them in your home or at a professional storage facility and wait until they’ve reached their full potential. This method requires a significant financial and time investment, as you’ll be completing each step independently and each can be time-consuming and costly.
You could instead choose to begin investing in wine using a platform that provides different investment tiers, provides managed portfolios and trading platforms, and even gives you the option of storing your collection at their specialized facilities. There are a number of options to consider, but Vinovest, Vint, and Cult Wine Investment are three that allow new investors to get started at a fraction of the cost and time commitment compared to doing things independently.
While both options are great, the path that is right for you will be determined by a number of individual factors. Consider how involved and committed to this asset you want to be, then begin to take the steps that work best for your life, investment goals, and financial circumstances.
Platform | Minimum Investment | Investments | Pros | Link |
 | $1,000 | Custom wine portfolio | Portfolios based on risk tolerance | |
 | $25 - $100 | Fine wine and spirit shares | Earn distributions from collection sales | |
 | $20,000 | Bourbon and Scotch Casks | Own entire whiskey casks |
Start taking advantage of wine investment returns
Wine can be a fantastic investment for a whole host of reasons. Whether you’re a wine lover looking to strengthen your connection to this industry or a passionate investor who is drawn to wine because of its market resilience and tangibility, there’s a place for you within this investment class—and there’s no time like the present to get started.
Having read through the information in this guide, you now have a better sense of whether wine is the ideal next investment for you. If you decide you are ready to get started investing in wine, whether through procuring and storing bottles on your own or by using an investment management platform, you’ve got your next steps carved out for you.