Storing Fine Wine Safely

The rationale behind fine wine investment is straightforward; fine wine is a tangible asset and a genuine luxury product that many aspire to own and enjoy consuming. Some consider it an even more useful investment than gold.

storing wine safely for investment

Of course the issue of supply is an important factor — there is a limited supply of any particular vintage, which leads to an increase in desirability.

It is an investment market on the up and according to some merchants, the prices for the very best wines have risen by an average of over 10% per annum over the past 25 years. There is no doubt opportunity exists to build a collection of wines to provide a financial return over the longer term.

For serious wine enthusiasts a collection represents an important diversification in an investment portfolio. But unlike a bond or stock portfolio, a fine wine collection is exposed to much more than market risk. The list of potential risks to wine is endless — it can be dropped, frozen, overheated, soaked, stolen or even forged.

While it is not possible to guard completely against the physical risks, there are some steps that will help.

Key to maintaining a collection of fine wines is to keep an inventory and ensure you track the values of the wine. If you don’t know the exact value of the wines, how can you adequately insure against accidents or loss? Remember that wine purchased many years ago is likely to have appreciated in value, so update values of your collection regularly after acquisition and ensure your current insurance provision is adequate.

A few simple measures will go a long way towards keeping the precious collection safe.Storing the wine at a constant temperature without major fluctuations will prevent premature ageing. If the temperature is maintained with an automatic system ensure it has adequate power back-up. Keep corks wet and reduce the risk of oxygen intrusion by storing the bottles on their side. Store them away from direct light, which could damage the wine. If you are based in a region prone to natural disasters such as earthquakes ensure the wine racks can withstand them.

Avoid moving the collection but if you have to move it take no chances – ensure you engage a shipping firm that specialise in very valuable goods. They will have the right procedures in place to adequately deal with temperatures and protection from shocks and sudden movements.Specialist insurers will also recognise that a full case if more valuable than 11 bottles and under a pairs and sets clause you would have the choice to be paid for the loss in the value of the whole case should one or more of the bottles be damaged.

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This article has been compiled using information available to us up to 09.04.15.