Is fine wine a good investment?

At Dawsons, we are often asked about the current value of fine wine and whether it makes a good long-term investment, and we are always pleased to inform that yes, fine wine can indeed be a fantastic investment opportunity if you know what you’re looking for.

Why is fine wine a good investment?

There are several reasons why fine wine can be such a great investment. Firstly, wine is a tangible asset, meaning you can hold it in your hand and see its value grow. Unlike stocks and shares, which can be volatile and subject to market fluctuations, fine wine is a physical asset that can be touched and resistant to market drops. You can easily track and monitor its value over time, and simply store it until the market presents a good time to sell.

Secondly, the value of fine wine tends to increase over time because it is a luxury product that is often produced in limited quantities. As the years go by, the supply of fine wine decreases as bottles are consumed, and the demand for rare vintage bottles increases. This drives up the price, making it an excellent investment opportunity. 

Lastly, wine is a highly liquid asset, meaning it can be easily converted into cash in just a short window of time. Unlike other forms of investment such as property, which can take months or even years to sell, fine wine can be sold relatively quickly, and buyer interest is high. Therefore, if you need to liquidate your asset in a hurry, you can do so without having to wait long for a buyer.

Possible risks of investing in fine wine

As with any investment, there is some risk associated with investing in fine wine. One of the main risks is that the value of the wine may not increase over time. Whilst this is rare, it is an eventuality to be aware of before you make an investment. However, remember that even if the value of the wine doesn’t increase, you still have a tangible asset that you can consume and enjoy.

Another risk to be aware of is the potential for fraud. Unfortunately, the fine wine world is not immune to fraudsters and there have been cases of counterfeit wine being sold at auction. However, any reputable auction house will take great care to authenticate the wine it sells. At Dawsons, we have a team of experts dedicated to ensuring extensive research has been carried out on every item we take to auction, so you can be sure that any wine you purchase from us is the genuine article.

How to get started

So, how can you get started with investing in fine wine? To begin with, it is always important to do your research, and looking at past auction results is a great way to get a sense of the sorts of returns to expect and the factors that may affect the value of a particular vintage. For example, a wine produced in what has been recorded as a particularly "good year" for that wine may be more valuable than one produced in a "poorer year".

When it comes to selecting a wine, it is important to choose vintages that are highly sought after and produced in limited quantities. Some of the most highly prized wines include Bordeaux, Burgundy, and Champagne, but there are many others from around the world that could also be good investments, so doing your research will help you know what to look for.

Additionally, we would always encourage you to buy or sell with a reputable auction house or wine merchant, who can help guide you through the process of investing in fine wine. At Dawsons, our experts can provide you with any information you require on the wines we sell, as well as help you through the process of buying and selling at auction.

Whether you are a seasoned investor or just starting out, investing in fine wine can be a rewarding and enjoyable experience that can provide both financial and personal satisfaction.

If you are considering selling any fine wine, please do get in touch with a member of our friendly team

We would be delighted to hear from you

0207 431 9445 / info@DawsonsAuctions.co.uk