Wine drinking in Australia as a lifestyle is relatively new compared to the wine cultures in France and other countries. It has to do with the high influx of European settlers way back a few centuries ago. A number of Australian wine clubs have emerged in the past few decades, and they made their own wines. Most of the clubs will send a case of wine to the members, and they are wine chosen by experts. This saves the time of purchasing the wines.

For investors, they should look through the wine reviews by famed reviewers to decide whether they should purchase those wines as an investments.

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I also emailed Universal Assets Investments to find out more. I had read about how wine investors should focus on the top Bordeaux red wines and not ship them out of the country in order to prevent sub-standard handling and storing. When the sales rep called me, he told me that his company focused on new age wine from Australia, since the growth potential was even higher. They would bring in wines from Australia, and then let the customer inspect them before storing in a specialty warehouse in Singapore. The wines would be insured. Three years later, I could sell the wines for a profit.

Out of the many hundreds or thousands of wines they brought in, only a small number depreciated in value. It was thus very important to find out more about rating system by famous wine critics. 

One important aspect to me is the amount of money required for investment. The sales rep told me that small time investors usually invested 20-30k to have a good portfolio of wines. Other investors with deeper pockets started in the range of 100k and more. However, he said he could look into coming up a portfolio for 10k.

One of the investors interviewed in a newspaper was Irene Ang, a local businesswoman and celebrity. She started investing quite some time back and was already reaping the benefits.

The interesting thing about wine investment is if they ever fail to work out, the investor could just open up the wines and drink them up. When I’m free, I will go down to the office to try out some of the wines and seriously consider investing in wine.

Sarah Tan- SingaporeProfit.com

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You can sign up at the website and admission is free. It is organised by http://www.shareinvestor.com/. Its website offers quite a lot of informative research on various tools and companies.

Anybody planning to go?

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While at the gym today, I picked up a copy of I.S Magazine and the free publication’s feature article was on ‘where to invest your hard-earned moolah’. It was written by Jorie Phey and Yong Yung Shin. Instead of buying a few bottles of wine haphazardly, and thinking of ways to store all by yourself, just buy from a wine investment firm.

Some steps to invest in wine. 

1. Buy wines like Bordeaux from France.
2. You require at least $5000 and invest for a minimum of 3-5 years.
3. You stand to get annual average returns from 8 to 14 percent. Some good wine investments returned 12-40 percent.
4. Since there is limited supply, but increasingly more people drink them, demand is high. This adds to the value of the wine as a luxury item.

• According to Universal Asset Investment, there are a few reasons to invest in wines.
• Tax Free   
• World-Wide Demand
• Increasing Rarity   
• Low Risk
• Decreasing Availability   
• Customised Portfolios
• Easily Realisable   
• Personal ownership of tangible asset
• No Annual Management Fees     

Equitywine.com recommends storing the wine in Bordeaux, and then get auction houses to auction them off in order to make maximum profits.

So long as there are no natural disasters, terrorist acts or other unforeseen circumstances, the cases of wine should be rather safe, and they have insurance as well.  

Well, since I don’t drink much wine, only when I’m at a fine dining restaurant. Maybe those of you who are knowledgeable in wines may like to share your comments on whether this is a worthwhile investment.

Sarah Tan – SingaporeProfit.com

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