What do you tell your cup of coffee when life gets demanding?
“Step aside Coffee, this is a job for Wine”,
What do you tell your financial securities when Investment gets demanding?
“Step aside Financial Securities, this is a job for Wine”.
The current investment scenario in the Indian Economy has not only made it apprehensive for the investors, but also has stimulated a fidgety search for havens. The vast majority of investors, simply financially illiterate are stuck with the conundrum of their lives: should they quit or should they stay invested for a long haul? And the classy-drunkards say “Wine is not the question, Wine is the answer!”.
With severe contribution from the loosening of wine export-import regulations in the Indian economy and an evergreen global market, Luxury-Wine is one of the very few secure chattels to bet your paises on. Followed by its very own peculiar risks, benefits, procurement, storage, insurance, parcel and holding charges, investment in Luxury-Wine in India starts at Rs 15,00,000/-. However, the future of wine investment in India looks positive with the growing global demand and an investor-class that seeks maximum returns at negligible risks.
Here are five bullets to maintain a fine winevestment:
1. Grasping “Investment” in the right context:
To most of our surprise, Bloomberg doesn’t include wine as an “Alternative Investment” anymore. The Blue Chip Wine Index, Liv Ex 100, has been listed on the Bloomberg platform paving way for Wine Investment to take the form of “Commodity Investment” in a full-fledged fashion.
Thus, if an investor seeks the most immediate high returns at low risks, he/she must go for a 18 months to 4 years investment period.
2. Gain knowledge of the global Wine Investment Market:
A quickie, old wine in new bottle, the rooftop prices are primarily attributed to the limited global supply not matching with the high demand. Ready-to-go investors must do their own research before market entrance.
This research should address queries such as: “How has wine investment overtaken most other traditional investments?” “How/why does it continue to do do?” “What are the premium quality wines?” “What is their investment potencity?” etc.
3. Understanding merits and demerits:
Needless to say, an investor must learn in detail the possible benefits from such an investment. In the Fine Wine Money market, the investors stand a chance to reap the following: High profits, low risks, Recession-proof securities, Collateral facility ( in certain European nations), Hedges and of course, status symbol.
At the same instant, an investor, prior to entrance and throughout trading is challenged by an unregulated market, lack of guarantee of return, frauds and last but not the least, the temptation to consume off the wine!
4. Recruiting a Wine Investment Portfolio Manager:
This is crucial, not just in Wine Investment, but for any all and sorts of financial investments. The investor must perform a thorough research of the competition in portfolio management, scan track records and observe trends while choosing a Manager,
In India, Bordeaux Traders are a reliable and highly professional organization specialised in fine wine investments.
5. The Trading-Investment Process:
Ultimately, the investors are to devise a strategy that shall necessarily conform to their requirements, expectations and investment magnitude. This must incorporate purchase of authentic stock, efficient storage-protection systems, and a suitable insurance coverage. The age old trick of buy cheap, sell dear applies.
To conclude, *I shall take the liberty to disclaim that I would never recommend consumption of alcohol, since its injurious to health! Rather, the world may perhaps play a never ending game of Fine Wine Investment based on the principle of “El más viejo es el vino, el más costoso” or “The older the wine, the dearer”.
Allow me to cut my own crap, do we have a new medium of exchange coming our way?
By S. Shahid Abdul Majeed