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What type Of Risks Are Involved In Wine Investment?

You’re likely familiar with the usual range of traditional investments like stocks, bonds, and fixed-income securities. While these options suffice for many investors, many investors also add alternative investments to their portfolios. Commodities like a wine investment are one potential way you can protect yourself against that volatility. Here’s what you need to know to start to invest in “liquid assets.”

One of the main reasons investors turn to alternative investments is for diversification, which provides financial protection. Investment in grade wine is different from the stuff you find at your local store. It’s important to really know and understand the market. A trusted advisor is always helpful. If you also want the help of a professional advisor, then you must refer to

An experienced advisor can help you to avoid certain wine investment risks such as:

  • A wine’s value doesn’t increase forever. It’s generally thought of as a “wasting asset” because it declines in quality and value after a certain point.
  • Wine can go bad if not properly maintained. You should know the provenance (history) of wine before you buy it, and you’ll need to store it in optimum conditions, too.
  • Wines cellared remotely need to be insured and bonded (to avoid losses due to damage and to cover excise taxes).
  • Fraud is common, especially when trading in countries where counterfeiting is rampant.

If you’re just not that confident in your investing abilities, online services can do all of the heavy liftings for you. Using proprietary AI that monitors the market, they make recommendations, facilitate the buying, storage, and selling; they even insure and bond it for you too. For all of this, they’ll take a modest commission (around 3%), which is still lower than most private brokers and auction houses.