What makes wine investments exciting and
Investing in wines is a risky business and not for the faint of heart or budget. But those who understand and
can weather the risks, will find this an exciting investment avenue. Global demand for wine is constantly on the
rise, making fine wine an interesting investment option.
| Tips for Wine
Investing in Wine Australia
Although investing in wines is considered an alternative investment, since
the mid 1990s it's become more fashionable to invest in fine wines. Australia is recognized as one
of the best producers of fine wines in the world, making it a great place to consider investing in
its wine business. Before you exploit this as a possibility, it's important to learn some facts
about wine business.
Investing in Wines
As is the case with any other investments, wine investment
often involves considerable risks and no guarantees. But investors who are well informed still
find investing in wines an attractive option. One of the reasons for this is that they follow the
reviews from well-known experts on wine. It's not a guarantee of success, but it can be a great
Wine as Loan Collateral
Can wine be used as a loan collateral? Amazing as it sounds, it can. But as
wine investing is a risky business and with all scams around, this option carries substantial
risks. Some financial institutions in the U.S. are willing to grant loan in exchange for fine
wines. One of the things with wine investment is that even if you have a rare wine, is the market
willing to pay for it?
Recent reports by Morgan Stanley global financial services firm (as reported by BBC), suggest that global demand
for wine in 2013 has exceeded supply by about 10%. This has caused the biggest wine shortage in the past 40 years.
Global wine production was growing until 2004, when it started to recede despite ongoing demand for wines.
But if you plan to become a wine investor, you must be able to afford losing money. Scams aside, wine is
particularly susceptible to a number of risk factors, such as being perishable, potential liquidity problems, as
well as being subject to market demand, as most investments are. That's why good wine investment funds always have
an exit strategy.
Nonetheless, for those who understand the risks involved and are prepared to deal with them, wine investment is
a very exciting area that can be handsomely rewarding to smart investors.