Wine Cellar Innovations Blog

Investing in Wine – Does the Dollar Have you Down?

October 23rd, 2010

Investing in WinesInvesting in stocks can be scary. What else can we invest in? I know, you know this! WINE.

This is coming straight from CNBC as they discuss with Charles Klatskin why investing in wine can be profitable.

Why does it make sense? Wine is a ‘fluid’ market. Asia and other third world countries are buying our wine and bidding it straight up. Charles Klatskin is a real estate developer turned wine investor who is having great success doing this very thing.

Klatskin shows off a few wines including a Lafite Rothschild 1982. Rothschild is worth around $5,000 a bottle at this time. Another one of his wines came out at $70 a bottle and is now $3,000 a bottle after a few years.

Between Bordeaux and Burgundy they are the best investments. California has a half-dozen wines that can appreciate like this but most are coming from France.

It’s interesting that Klatskin keeps his wines at 50 degrees, which is colder than most. He advises to simply start reading all you can about wines to get you started. Once you invest your own money, you really learn a lot. Team up with a quality store and they will help you. Klatskin only buys futures and that is the only way you are going to make money. He also checks the weather report!

Is it a hobby or is it an investment? This is no cheap hobby, that’s for sure! Klatskin advises that you need $150,000 to start investing in wine.

The big question we all want to know is can you make any money your first year? After two years, once the wine is delivered, you will make money.

Klatskin made more money in wine, than he ever made in anything else. What was his average return? Are you ready for this? His average return is 20% per year.

Worst moments? The 80’s were the worst.

Are you ready to start investing in wines? If there is anything left in your bank account after the past few years, you may want to look into it! If you already invest in wines now, what is your average return?

2 responses to “Investing in Wine – Does the Dollar Have you Down?”

  1. Kristi writes:

    I have never personally purchased wine futures. I’m still stuck on mutual funds. 🙂 But Wine-Searcher has some good information:

    I would start Googling it and reading up on how to do it.

  2. Ian writes:

    How is the best way to “buy futures”?

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