Ask your broker about wine investment

February 14th, 2011 |

Investing in wine can be quite confusing; with all the choice of fine wine out there finding one that will yield the biggest return is something that needs to be well researched. By far the easiest option is to use a broker. These are people that specialist in this form of alternative investment and make their money by making you profit. Not only this, your broker can take care of the all the financial side, tax, and storage.

One you have purchased your investment the proper storage of the product needs to be made. If the wine investment is not stored properly then it may make it difficult to sell in the future or making it achieve a lower price. A bottle of wine, like stamps can be kept in “mint condition” and it is this that allows it to be determined from the fake bottles on the market. The cost of the correct storage facilities should be included in the brokers fees when they sell the end product and make a profit.

When your wine is in storage it will be classes as “on bond”, which means it is in transit and thus not liable for VAT. It is not uncommon for wine to change hands many times without ever leaving the storage facility as it is traded between dealers.