Talking Wine – May 2013

Please do not be tempted with promises of high returns from wine investment companies. There are some reputable companies in the marketplace but many offer poor advice with overinflated promises. Some firms do not explain the risks or detail when making these investments, many of which are unsuitable for certain investors. Rick Ealing, head of investment solutions at Sanlan UK says, “Bottles of wine are not investments. Investments are supposed to earn you money and yet wine pays you no dividends, interest or rent. In fact it has heavy storage costs. People expect investments to grow over time but all wine eventually peaks and decays. You are at risk of counterfeiting, theft and fire. You will in fact enjoy very few protections offered to investors in regulated funds.”

Château Margaux is bringing out a third wine this year to follow its second wine label Pavillon Rouge. These second or third wines from top Château often represent excellent value for money being made in a similar fashion often from younger vines or from less successful plots. However they bear the pedigree of the master Château who will not release rubbish and the prices are considerably more attractive!!