Wine Questionary:

Investing in wine: Is it a good idea?

I'm sure you've read the stories about investors who've filled their cellars with California Cabernet and the Rothschilds' Bordeaux in hopes of making a killing. Maybe you've even thought about taking a flyer in this market, figuring you can always drink your losses!

But the wine-loving bulls of Wall Street to the contrary, wine as a financial investment is a very risky thing. Fine wine is far less predictable than more traditional investment commodities. What's more, the would-be wine investor also must consider long-term storage. Temperature-controlled cellaring facilities are critical -- either a naturally cooled or electric cellar unit capable of storing all of your wine at a constant 55F (13C). Even then, a power failure can wipe out your inventory; while a negative review from a major wine critic can impose a paper loss from which you'll never recover.

My advice? Anyone who views wine as a mere investment would be better advised to get into more traditional markets that hold a more substantial hope for success. But if you're investing in wine simply for your own pleasure, looking for your profits in tasting enjoyment, then you can hardly lose.

For more good advice on investing in wine, see Natalie MacLean's comprehensive report, Bottled Blue Chips, and Bryan Loofbourrow's thoughtful commentary, \r\nCan wine be an investment?

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