When?
If things go well the price of a wine investment follows the following path:
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Steep increase in price between futures and retail release
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Increase in price for 12/18 months following releases
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Level price until the wine reaches maturity
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Steady growth as wine becomes scarcer and is being consumed
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Slow growth as an ‘antique’ wine (past normal drinking dates)
In graph form this looks like:
As such thee best times to sell are;
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On release
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18 months after release
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Near the end of maturity
This graph shows a best case scenario and does not show any market fluctuations. There is a fourth time to sell. Wines can go in and out of favor (move between growth to value in investing terms). The fourth time to sell is when a wine has been an investment darling for a while, and the current vintages are not being reviewed as well. This leads to a lull in the price growth and is a good time to sell.
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