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VINDOME's 7 top tips to start investing
1. Learn how to recognise a fine investable wine
Fine wine and notably investable fine wine is defined by three points.
First, fine wine comes from a specific, identifiable production area, producers or vineyard which possess a long-standing reputation for high quality.
Second, fine wine has unique organoleptic properties like colour, flavour, bouquet and taste, universally recognised as such by the world’s most famous wine critics. Finally, fine wine is defined by limited production.
Fine wine is created to improve as it ages. Over time it continues to develop in quality and as it approaches its drinking window (the period of time when it is considered to be at its peak for drinking), it becomes more attractive to consumers. Therefore, demand increases whilst at the same time the supply is inevitably reduced and naturally forces an increase in market value.
First, fine wine comes from a specific, identifiable production area, producers or vineyard which possess a long-standing reputation for high quality.
Second, fine wine has unique organoleptic properties like colour, flavour, bouquet and taste, universally recognised as such by the world’s most famous wine critics. Finally, fine wine is defined by limited production.
Fine wine is created to improve as it ages. Over time it continues to develop in quality and as it approaches its drinking window (the period of time when it is considered to be at its peak for drinking), it becomes more attractive to consumers. Therefore, demand increases whilst at the same time the supply is inevitably reduced and naturally forces an increase in market value.
2. Check for Authenticity
Like all luxury goods, fine wine encounters counterfeiting.
There are many small details to look out for when purchasing from an unregulated source, from the quality of the label, to the kind of sediment in the bottle. As Vindome only works directly with Chateaux and producers, we guarantee the provenance of all wines on our platform. We also seal all our cases with an NFC (Near Field Communication) tag. This tag contains a microchip with a detailed information record of the case contents, the transaction history and ensures that your wine is traceable at all times. Furthermore, all wine trades are recorded on blockchain, guaranteeing safe, secure and discreet transactions for both buyer and seller.
There are many small details to look out for when purchasing from an unregulated source, from the quality of the label, to the kind of sediment in the bottle. As Vindome only works directly with Chateaux and producers, we guarantee the provenance of all wines on our platform. We also seal all our cases with an NFC (Near Field Communication) tag. This tag contains a microchip with a detailed information record of the case contents, the transaction history and ensures that your wine is traceable at all times. Furthermore, all wine trades are recorded on blockchain, guaranteeing safe, secure and discreet transactions for both buyer and seller.
3. Understand the Ratings
Ratings are the simplest way for a wine critic to communicate their opinion regarding the quality and potential ageing ability of a wine. These numbers are found alongside tasting notes and help consumers and collectors to decide which wines to invest in. Ratings by the best known Critics can influence global buying and consumption trends and, consequently, wine prices.
Most critics use the 100 point scale, but some (see below) use the 20 point scale.
Wines are rated several times during their lifetime. Investors should pay special attention to the ratings at En Primeur stage, followed by the first rating once the wine has been bottled. The evolution between these two scores gives a good indication of how the wine will perform over time.
Critic scores are as follows: Wine Spectator 100-Point Scale Jancis Robinson's 20-Point Scale
Vindome trusts the following wine critics:
WA = Robert Parker Wine Advocate. Rates on a scale of 100.
JS = James Suckling, American wine critic. Rates on a scale of 100.
JR = Jancis Robinson, British wine critic. Rates on a scale of 20.
WS = Wine Spectator. American magazine specializing in wine tasting notes. Rates on a scale of 100.
AG = Antonio Galloni, American wine critic. Rates on a scale of 100.
Most critics use the 100 point scale, but some (see below) use the 20 point scale.
Wines are rated several times during their lifetime. Investors should pay special attention to the ratings at En Primeur stage, followed by the first rating once the wine has been bottled. The evolution between these two scores gives a good indication of how the wine will perform over time.
Critic scores are as follows:
100 Point Scale
Score
Explanation
95-100
Classic: a great wine
90–94
Outstanding: a wine of superior character and style
85–89
Very good: a wine with special qualities
80–84
Good: a solid, well-made wine
75–79
Mediocre: a drinkable wine that may have minor flaws
50–74
Not recommended
20 Point Scale
Score
Explanation
20
Truly exceptional
19
A humdinger
18
A cut above superior
17
Superior
16
Distinguished
15
Average
14
Deadly dull
13
Borderline faulty or unbalanced
12
Faulty or unbalanced
Vindome trusts the following wine critics:
WA = Robert Parker Wine Advocate. Rates on a scale of 100.
JS = James Suckling, American wine critic. Rates on a scale of 100.
JR = Jancis Robinson, British wine critic. Rates on a scale of 20.
WS = Wine Spectator. American magazine specializing in wine tasting notes. Rates on a scale of 100.
AG = Antonio Galloni, American wine critic. Rates on a scale of 100.
4. Look at Various Investment Horizons
The Investment Horizon gives an idea of the timeframe of your investment.
You can diversify your investment horizons by adding different vintages to your portfolio. Mature wines can perform in the short to medium term if sourced at a competitive price. Recent vintages that are not yet in their drinking window will generate ROI in the medium to long term. Investing in En Primeur will secure long term returns.
In most cases, the drinking window spans between 10-20 years (in exceptional vintages this can be longer) from bottling. If correctly stored, your wine will age correctly and increase in quality. Correct storage assumes an ideal ventilated environment, with constant temperature and humidity control.
Vindome suggests three investment horizons:
Low: 0-5 years
Medium: 5-10 years
High: 10+ years
You can diversify your investment horizons by adding different vintages to your portfolio. Mature wines can perform in the short to medium term if sourced at a competitive price. Recent vintages that are not yet in their drinking window will generate ROI in the medium to long term. Investing in En Primeur will secure long term returns.
In most cases, the drinking window spans between 10-20 years (in exceptional vintages this can be longer) from bottling. If correctly stored, your wine will age correctly and increase in quality. Correct storage assumes an ideal ventilated environment, with constant temperature and humidity control.
Vindome suggests three investment horizons:
Low: 0-5 years
Medium: 5-10 years
High: 10+ years
5. Invest in correct Storage and Insurance
In order for fine wine to age correctly and improve in quality, it must be kept in constant stable environmental conditions. All wines on our platform are stored in our professional warehouses, strategically located close to the production regions.
We have trusted international storage company J.F. Hillebrand to provide state of the art storage options. Hillebrand’s bonded warehouses are equipped with 24/7 security systems, and guarantee ideal conditions for wine storage.
Vindome also offers comprehensive insurance options for wines stored in Hillebrand’s warehouses, indexed at market value. Please email [email protected] for further information.
We have trusted international storage company J.F. Hillebrand to provide state of the art storage options. Hillebrand’s bonded warehouses are equipped with 24/7 security systems, and guarantee ideal conditions for wine storage.
Vindome also offers comprehensive insurance options for wines stored in Hillebrand’s warehouses, indexed at market value. Please email [email protected] for further information.
6. Create a Balanced Portfolio
A balanced portfolio should include wines from different countries, regions, appellations, classifications and vintages. The selection should consider various time horizons and ROI expectations. Unmixed cases are always more attractive to the potential buyer.
Vintage Champagne and wines En Primeur are excellent additions to any portfolio. Historical data analysis can also help when it comes to creating a balanced portfolio of high performing fine wines.
Vintage Champagne and wines En Primeur are excellent additions to any portfolio. Historical data analysis can also help when it comes to creating a balanced portfolio of high performing fine wines.
7. Know How to Sell
The right time to sell your wine is always when you have decided to. However, there are a few factors that should be considered prior to selling:
- Monitor the market. Is the wine approaching its drinking window? If the wine is already in its drinking window, how many years does it have left? Certain wines held beyond their drinking windows may decline in value.
- Time your sale according to market trends and demand. Champagne for example is popular in the winter, while the market for still white wine is in the spring.
- Find a reliable selling platform. Vindome puts together thousands of wine professionals, buyers, sellers and enthusiasts via its secure trading app. Current average market trading prices are supplied by Wine Decider and used for portfolio evaluation. This, coupled with notifications on market movers and trends, gives our customers the data to best manage their investments and ascertain an accurate selling price for their wine.