5 steps to becoming a fine wine investor
Increasing numbers of investors are seeing the attraction of putting their money into wine. This can be a sensible investment choice if you do your research and take a few precautions to avoid falling prey to scammers.
Always bear the risks in mind
Unit trusts, investment trusts and open-ended investment companies may be safer and more reliable investment options than wine, but many investors like to diversify and try something different. There are numerous regulations to safeguard investors in wine, despite the relative lack of statutory safeguards compared to other industries. Firms that offer investment in fine wines are regulated and should not promise guaranteed returns. If you come across any company doing this, steer clear of it.
Only deal with experienced professionals
Investing in wines may sound like much more fun than other investment opportunities, but it is important to only deal with people who really understand the market and know what they’re doing. Any businesses looking for investment should have clear, transparent and strict investment processes so you know where you stand at all times. Don’t listen to individuals or companies that promote investing in wines as a fun option or joke about the benefits.
Ask the investment company you are thinking of dealing with for detailed information about the wines they are planning to buy and sell and do some research of your own on reputable sites such as http://thewinecompanyni.com/, online wine merchants in Northern Ireland. This Is Money explains that investing in wine can be a good way to combine your hobby with your financial investments.
Ignore unsolicited invitations
Never respond to any cold callers who attempt to get you to invest in wine, whether it is by phone, email, mail or any other method. If you are interested in investing in fine wines, do your own research and highlight companies you want to deal with.
Avoid “virtual” companies
Only deal with firms with legitimate physical addresses. You should try to visit the company office if you are unsure of its credentials.
Check out the merchandise
Ask to see the wine warehouse before parting with your money. If the company is not keen to arrange this, find out why. This is a great way to ascertain whether the firm is genuine.