Lisa Gray

ContactLisa Gray has been a wealth writer since 2001. She has been involved in the wealth management industry since 1988. She is the author of two bestselling books—The New Family Office and Generational Wealth Management.
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graymatter Strategies LLC

Wealthy Wine Collectors Need Advice On Managing Collections As An Asset edit
Monday, April 16, 2012 09:12

Tags: alternative investments | differentiation | investment strategies

If you have a passion for fine wine, you may be able to help high net worth clients with theirs. Wealthy investors often have valuable wine collections. Like art, they need advice on managing those collections and consider them as part of their investment portfolios. They view their wine collections as part of their diversification strategy, only one whose value can be influenced by many other factors than market values.

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Wine must be stored properly. Bottles can be dropped and broken. Freezing or overheating can ruin quality. In order to properly value a wine collection, you need to know the wine market. Like any other asset, a collections value should be updated periodically. Wine collections need to be insured. Most common insurance policies are not adequate to cover a collection of fine wines. Coverage should include anything that affects the value of the wine and should not have a deductible.
 
Knowing how to care for a collection is also imperative. Wine must be kept at the right temperatures. Exposure to too much heat or cold can make wines age faster. Storing wines on their sides and away from light will keep the cork wet and prevent oxygen from entering the bottles. Shipping wines carefully to maintain correct temperatures and prevent breakage is also part of a collection risk management strategy.

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