LEVEL OF INVESTMENT
As prices for the best wines rise, so too the cost of entry. Buy at the level of risk you are comfortable with as there are low, medium and high-risk strategies with wines. The wines that are of high enough quality to have investment potential, start at around £1,000 per case rising to more than £50,000 per case. As with any investment the key is to work with a sum you can afford. We recommend serious investors start with £100k+, with the most dynamic investors entering the market with £500k+. More substantial outlay gives your portfolio flexibility with a balanced selection of wines, increasing the potential for better returns. It is always best to view your portfolio with a sum of money that can work for you, as like any investment wine can go down as well as up.
LENGTH OF INVESTMENT
Notwithstanding the underlying supply and demand driver, it is reasonable to expect fluctuations in market prices. For this reason, we would recommend a medium to long term hold period (eight to ten years plus), allowing time to ride out any potential downturns.
COST OF INVESTMENT
The only costs, other than the cost of the wine itself, are storage charges and commission on sale. Private Reserves storage costs range from £5.28 - £6.48 ex VAT per 6 bottle case per annum, depending on the total number of bottles stored, which includes insurance cover under Octavian’s All Risks Policy. In the rare event a case of wine is damaged or lost, it will be replaced. Where replacement is not possible you will receive full market value for the wine.