Investing in Wine

mac2009

uberteeb wrote: »

Good evening folks, I come seeking some advice regarding investing in fine wine, first off a bit about my situation.

As of now I have about £1,000 a month to save with the aim of getting myelf up to around £10k by August/September next year for a house deposit. I have absolutely no experience of investments. I made the fatal mistake of entertaining a broker who phoned me last week and I've just had the follow up call. As yet I have comitted to nothing.

My question is would anyone recommend investing in 'fine wine' through a brokerage to achieve my goal? It looks like a reasonable investment but even the brokers own literature talks about medium to long term investments. Unsurprisingly there was 'a great deal for me' (the short term investor) tonight, getting a case of £1,200 wine for £1,060 with an insurance fee and bond warehouse fee coming in around £20. There are no more fees up front, they take 10% of the profit when I sell on, nothing else. The wine is held in my name so if their company goes belly up I still have the wine (although this wine merchant has been going for 25+ years). It takes 3-4 weeks to withdraw my investment when I need it for my flat/house deposit. I've been assured 15-20% p/a is a pessimistic prediction.

So would you punt for this case and see how it goes? Would you invest elsewhere? Would you go for the safe ISA instead?

Also, with my next months saving would you go for another case, do the same the following month and so on and so on?

I've scowled the internet and the wine market seems rosy but it does seem more long term than what I'm looking for. I've also had a look and search round this site and haven't found anything so apologies if this has already been discussed. I'm getting a call back in a couple of days while I 'mull it over'. I'm not a regular contributor to these forums but read them regularly so I know there are a lot of knowledgeable people out there.

Thanks for any advice.

Am I being thick or does £1000pm for 10 months ('till end of Sept. 2010) equal 10k even with no interest or risk? Why on earth risk it buying something you know nothing about?

davetrousers

There was another thread like this a few weeks ago!

davetrousers

I'll try and find it

http://forums.moneysavingexpert.com/showthread.html?t=2070771&highlight=invest+fine+wine

Reaper

davetrousers wrote: »

I'll try and find it

http://forums.moneysavingexpert.com/showthread.html?t=2070771&highlight=invest+fine+wine

See post 10

LongTermLurker

10 months for a necessary target is way too short to go considering any kind of investment, let alone anything as illiquid and subjective as wine.

Wine's for drinking not saving anyway - save £960pm in a deposit/term/ISA account, buy a nice bottle every week and drink it with your dinner - in 10 month's time you'll have nigh on £10k and will have enjoyed your life at least once a week.

Myrmidon_J

I absolutely concur with the sentiments expressed in the vast majority of these posts - stay well away!

Investing in "fine wine" is something that should be considered only over a long timescale (10+ years), by the extremely wealthy, with a tiny fraction of their net worth.

The same applies to collections of art, signatures, stamps, etc.

If your investment timescale is less than a year - cash is king, even if it's paying a miserly rate. You cannot really afford to risk any capital loss.

Lokolo

mac2009 wrote: »

Am I being thick or does £100pm for 10 months ('till end of Sept. 2010) equal 10k even with no interest or risk? Why on earth risk it buying something you know nothing about?

£100 * 10 = £1,000, not £10,000. Blonde moment?

Biggles

Lokolo wrote: »

£100 * 10 = £1,000, not £10,000. Blonde moment?

It was £1,000 a month, not £100. And I agree with Primrose - irrespective of the firm concerned, wine is not a short-term investment.

Lokolo

Biggles wrote: »

It was £1,000 a month, not £100. And I agree with Primrose - irrespective of the firm concerned, wine is not a short-term investment.

Ah I was just reading his post which said £100. Ah wells.

uberteeb

So when he phones back tomorrow I'll say "sign me up"? :rotfl: