Frequently Asked Questions

Below you can find brief answers to most questions about investment in wine, including why wine is a good investment, the expected returns on your investment and how to invest in practice.

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FAQ

Wine as an Investment

  • WHY IS WINE A GOOD INVESTMENT?

    Constant production, increasing demand owing to growing interest and purchasing power, falling supply due to ongoing consumption, increasing quality as the wine matures and annual price increases for new vintages means that the price of fine wines increases over time, meaning that wine can serve as an investment.

  • WHAT ARE THE CONDITIONS FOR INVESTING IN WINE?

    Investment in wine requires a broad knowledge of both wine, and wine trading is dependent upon purchases and sales being made at attractive prices and presupposes the correct storage of the wine. Historically, wine investment has been limited to large wine collectors and professional wine merchants.

    Rare Wine has over ten years of experience in trading in exclusive and rare wines, extensive market insight, an international trading network and its own warehouse with a capacity of over half a million bottles.

    This means that Rare Wine Invest can offer everyone the opportunity of investing in wine on market conditions so that everyone can participate.

  • WHICH WINES ARE SUITED FOR INVESTMENT?

    In principle, only large vintages of top-notch wines commended by wine critics with storage potential from well-known and renowned producers are suitable for investment, and hence less than 0.1% of global production qualifies as investment wine.

    Furthermore, investment should preferably be made in wines in a perfect condition in whole cases that have been stored correctly – further, the wine must, of course, be priced attractively in relation to both the market in general and similar wines.

  • WHAT SHOULD YOU BE AWARE OF WHEN INVESTING IN WINE?

    Rare Wine Invest knows the pitfalls and will be pleased to assist you with everything from investment advice, the composition of portfolios, the purchase of wine at the market price without excise and VAT, storage in a bonded warehouse, on-going advice and the purchase and sale of wine.

    Unless you are professionally engaged in trading or investing in wine, you should seek the best professional investment advice and be aware of the costs of advice, purchase/sale and on-going services.

Return, Strategy and Risk

  • WHAT ARE THE RETURNS THAT CAN BE EXPECTED WHEN INVESTING IN WINE THROUGH RARE WINE INVEST?

    Based on our in-depth knowledge of the wine market and a solid investment background, we would expect that a long-term investment in wine provides an annual return of 8-10%.

    Historical returns are no guarantee of future returns and returns in practice might deviate from expectations.

    We draw your attention to the fact that the returns on investment in wine could be negative.

  • HOW MUCH SHOULD YOU INVEST?

    The minimum investment is EUR 10,000, but we would recommend an investment of at least EUR 40,000, as this will provide you with additional opportunities regarding the selection of wines to be invested in, ensures better risk distribution and reduces the costs.

  • WHAT IS THE RECOMMENDED INVESTMENT HORIZON?

    We recommend an investment horizon of at least five years as a longer time horizon provides more stable returns and lower risk.

    Investments with shorter time horizons are possible, and high returns can be obtained in a short time, but, due to the shorter period, the risk is larger.

  • WHICH WINES ARE INCLUDED IN THE OPTIMUM PORTFOLIO?

    To obtain the maximum return at the lowest risk, we recommend that you put together a broad portfolio with different investment wines.

    The portfolio should comprise young, immature wines as well as older mature vintages, primarily from Bourgogne and Champagne, select Italian, American and German wines, a few Bordeaux wines and some fortified wines and spirits.

    A characteristic that should be shared by all the wines is that, in addition to living up to the investment wine criteria, they should also be drunk on an ongoing basis and only be the object of speculation to a lesser degree.

  • WHAT IS THE RISK OF INVESTING IN WINE?

    Historically, investment wines have provided a higher return and have been subject to a substantially smaller risk than stocks, and, for the past ten years, the risk-adjusted return on investment for wine has been higher than that of stocks.

    The largest risk factors related to investment in wine are poor advice, excessively high purchase prices, incorrect storage, excessively low selling prices and excessively high on-going costs.

Prices and Costs

  • WHAT IS THE COST OF PURCHASING WINE FOR INVESTMENT?

    The wine is sold at the market price without any addition for trading costs or brokerage, and the purchase is not subject to the purchase of other services.

    Investment advice provided in connection with the purchase of wine for investment is free.

  • WHAT IS THE COST OF SHIPMENT?

    Delivery to the bonded warehouse at Dansk Toldoplag in Vodskov is free, whereas delivery to Denmark and the rest of Europe is possible subject to payment of customs duty, excise, VAT and shipment costs.

  • WHAT ARE THE ONGOING COSTS?

    There are no current costs related to owning investment wine, but we always recommend that Dansk Toldoplag stores the wine under optimal conditions as the wine will otherwise risk being damaged.

    For example, the average annual on-going costs for storage and portfolio administration are 0.64% over a 10-year period based on an investment of EUR 40,000, assuming 150 bottles and an expected annual value increase of 10%.

  • WHAT IS THE COST OF SELLING THE WINE?

    You can sell your own wine at any time outside of Rare Wine. However, we recommend selling the wine to Rare Wine at the pre-agreed rate of market price, in practice rate 90-95 of the current market price. This way you get the best price for your wines - it's both easy and safe.

    In case of self-sale, the entire sale price accrues to the seller, but a fee of € 0.25 per bottle is imposed (min. € 25). This covers handling etc.

Storage

  • HOW SHOULD WINE BE STORED?

    Wine must be stored horizontally at a constant temperature of about 12 degrees at a humidity level of around 75% and may not be exposed to direct sunlight or vibrations.

  • CAN RARE WINE INVEST OFFER STORAGE OF WINE?

    Yes. Rare Wine Invest has at its disposal Denmark’s only public bonded warehouse for wine and spirits, which is operated as an independent company under the name of Dansk Toldoplag, and a storage capacity of over 500,000 bottles of wine under optimum conditions.

  • IS THE WINE INSURED?

    Wine stored at Dansk Toldoplag is of course insured.

    In the case of loss or damage, the wine is either re-acquired or replaced at a rate of 110% of the latest valuation.

  • IS IT POSSIBLE TO INSPECT ONE’S WINE?

    Yes, Dansk Toldoplag is open between 10:00 and 15:00 on all working days, and inspection, delivery and collection of wine is possible during those hours, but at a minimum of one working day’s advance notice.

Ownership

  • WHO OWNS THE WINE?

    As an investor, you purchase the wine and accordingly, you are the owner of the wine.

    You decide where it should be delivered and what you want to do with it subsequently.

  • CAN I CHOOSE TO SELL OR DRINK MY WINE?

    Yes, as the owner of the wine, it is entirely up to you whether you want to sell or drink the wine.

  • HOW ARE MY RIGHTS OF OWNERSHIP ENSURED?

    Each investor is granted a unique customer ID upon storage of the wine by Dansk Toldoplag.

    The wine is packed on one or more pallets that are clearly marked with the customer ID and clearly labelled as being owned by a third party with reference to the customer list.

    The investors’ wines are never mixed, and pallets never hold wine from more than one investor.

  • WHAT HAPPENS IF RARE WINE INVEST OR DANSK TOLDOPLAG CEASES OPERATIONS OR GOES BANKRUPT?

    If Rare Wine Invest ceases operations or goes bankrupt, it is immaterial because, as an investor, you own the wine. The operations of Dansk Toldoplag can, therefore, continue unchanged.

    All goods stored at Dansk Toldoplag are clearly marked with the owner’s unique customer ID and, thus, the investor’s property rights are ensured at all times - also in the event that Dansk Toldoplag should go bankrupt.