Is now a good time to invest in wine?

Sunday October 5 2008
Sounds silly as the credit crunch continues to squeeze our spare cash but choose the right wines you might make a handy profit.Consistently over time, fine wine generally shows a return of around 12% per annum, although some bottles do much better than that. A case of 1982 Château Pétrus in 1983 would have cost £300 which currently fetch around £32,000. Which châteaux to follow? For a list of the top 100 properties, nearly 95% of them from Bordeaux, have a look at www.liv-ex.com, which tracks these things on a daily basis. Wine merchants and fine wine fund managers support the claim that wine investments are offering a more reliable return than FTSE-100 shares!!

Investing some money into wine? Follow 10 simple rules: 1. Buy the best Bordeaux (the First Growths, the Super Seconds and the top St Emilions and Pomerols) from the best vintages. 2. Always deal with a reputable wine merchant or broker (have a look at www.investdrinks.org for a list of companies to avoid). 3. Compare prices before you buy. 4. Consider the services of a regulated wine investment fund, such as the Vintage Wine Fund (www.vintagewinefund.com), Wine Asset Managers (www.wamllp.com) or Magnum Fine Wines (www.magnum.co.uk). 5. Buy your wine as early as possible, preferably en primeur. 6. Leave it in bond, so that you don't pay duty or VAT. 7. Use a professional storage company. 8. Be aware that you are taking a risk. 9. Buy the wines that the powerful American critic Robert Parker likes. 10. Remember that you can always drink your investment. Tim Atkin recommends four wines which won't make you rich, but guarantee you'll love drinking them.

The raisiny, mature, multi-dimensional Taste the Difference 12-Year-Old Pedro Ximénez (£7.19 per 50cl, 18%, Sainsbury's); the racy, refreshing, subtly oaked 2005 Montsant Old Vines Garnacha (£8.99, 14%, Marks & Spencer), which has to rate as one of Spain's greatest red-wine bargains; the waxy, toasty, grapefruity, Semillon-based 2006 Château Le Chec, Graves (£9.75, 12.5%, Adnams, 01502 727 222); and, last of all, the smooth, powerful, sun-drenched 2006 Benmarco Malbec, Dominio del Plata, Mendoza (£11.99, or £8.99 each for two, 14%, Majestic).

VIA

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