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There is low liquidity in US wine inventory, as most US states will only allow private wine sales through auctions, which themselves may take a commission of 15% to 25%. Investment in fine wine has attracted fraudsters both in the UK and US, who prey on their victims' ignorance of this sector of the wine market. Losses by investors to rogue wine investment firms can be significant, made more acute by the fraudsters willing to re-offend.
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that pools the investors' capital. In the former instance (directly buying specific cases of wine), it is recommended that inexperienced investors work with a broker, merchant, or a consultant, to minimize risk. Many authorities also publish independent guides for the investor to help navigate this investment class. Indeed, complex models and formulae have been applied to tracking investment wine's historical returns.
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Wine as an investment does have some concerns, including the fact that (unlike dividend-paying stocks and bonds) stored wine produces no return for the investor until it is sold, and insurance and storage costs will mean the investor is losing money while waiting for the wine's value to appreciate.
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While premium wines have been around for centuries, the formal and organized sale and resale of the best wines for profit became a more established phenomenon in the late 1970s and early 1980s. Indeed, at least in the United States in the 1960s and early 1970s, newspaper articles about investing in
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Bordeaux region of France, which explains why the region is the main target for investment wine fraudsters. Vintage ports historically have made up much of the rest of the market inventory, but now more and more varied and global selections of wines are finding their way into the investor market.
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While there may be tens of thousands of wine producers across the globe, it is estimated that perhaps only 250 produce the sort of premier wines that are worth considering as a financial investment. It is also estimated that about 90 percent of the world's investment grade wine is produced in the
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Wine investment is usually conducted through one of two main methods. The first involves purchasing and reselling individual bottles or cases of particular wines (wine for investment tends to be sold in sets of 3, 6, 9, 12, or 13). The other option is purchasing shares in an investment wine fund
318:, it was legal to sell wine without a retail license, and more investors were learning how to transact their trades through legal brokers with the necessary licenses. In Europe, laws are much less restrictive regarding wine selling and reselling.
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wine were more likely to warn that it is illegal for individuals to sell wine, and that the "investment" would be drunk by the investor. However, by the mid-1980s, in the state of
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often works by charging excessively high prices for off-vintage or lower-status wines from famous wine regions, while claiming that it is a sound investment unaffected by
232:. While most wine is purchased with the intent of consuming it, some wines are purchased with the intention to resell them at a higher price in the future. A wine's
335:. Efforts made by regulators to stem losses to rogue investment firms include the closing down of companies in the public interest, and cease and desist orders.
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830:"Seed International is now being investigated by the FBI – 'three American states have issued cease-and-desist orders against them and more may follow'".
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Outstanding vintages from the best vineyards may sell for thousands of dollars per bottle, though the broader term "
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602:, one of the world's largest dealers, started "Fine wine" prices at about £25 in March 2009 with a wine from
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464:"Investing in fine wine-don't be a victim of fraud-Buying fine wines: A checklist"
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It may require cleanup to comply with
Knowledge's content policies, particularly
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Investing in Liquid Assets: Uncorking
Profits in Today's Global Wine Market
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often goes up as time passes and consumption increases as the
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from the
Bordeaux region of France, is highly collectible.
663:"Americans investing in wines as hedge against inflation"
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Jean-Marie
Cardebat; Jean-Marc Figuet (8 February 2010).
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Purcell, N. (1985). "Wine and Wealth in
Ancient Italy".
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A major contributor to this article appears to have a
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484:Is Bordeaux wine an alternative financial asset?
832:Investdrinks.org "Seed International Wine Scam"
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353:First class returns for alternative investments
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692:"Investment Technique Needed for Wine Buys"
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50:Learn how and when to remove these messages
507:"The Rate of Return on Investment in Wine"
86:. Please do not remove this message until
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181:Learn how and when to remove this message
163:Learn how and when to remove this message
106:Learn how and when to remove this message
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82:Relevant discussion may be found on the
870:American Association of Wine Economists
834:. Messiuer Plonk – OffshoreAlert – FBI.
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568:Clarke & Spurrier's Fine Wine Guide
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875:London Association of Wine Investment
798:"Wine frauds leave buyers in the red"
373:Wine collectors find a fruitful asset
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780:"Wine Trading fraudster convicted"
720:"Betting on Bordeaux Series: Wine"
690:Sylvia Porter (20 November 1967).
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902:Commodities used as an investment
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718:Frank J. Prial (28 August 1986).
31:This article has multiple issues.
671:. Associated Press. 14 June 1973
143:. Please discuss further on the
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571:. Houghton Mifflin Harcourt.
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759:Kiplinger's Personal Finance
621:The Journal of Roman Studies
565:Clarke, Oz (November 2001).
438:"Buying wine for investment"
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440:. IFWIC.org. Archived from
88:conditions to do so are met
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751:Thomas, Gary (July 1987).
607:website "Fine wine offers"
394:Westgarth Wine Investments
314:, and in special cases in
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786:. Jim Budd. 13 July 2011.
600:Berry Brothers & Rudd
212:, is seen by some as an
697:Pittsburgh Post-Gazette
531:Sokolin, David (2008).
537:. Simon and Schuster.
418:The London Wine Cellar
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218:traditional investment
214:alternative investment
668:Eugene Register-Guard
492:Auckland, New Zealand
390:"Wine Investment 101"
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141:neutral point of view
725:St. Petersburg Times
216:other than the more
897:Wine classification
375:. Walter Hamilton.
75:of this article is
880:2018-12-06 at the
806:. 18 October 2008.
509:. Economic Inquiry
444:on 16 January 2012
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847:Missing or empty
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299:Vintage port
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220:holdings of
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230:real estate
228:, cash, or
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764:16 January
736:16 January
703:16 January
675:16 January
584:16 January
550:16 January
513:16 January
448:16 January
423:2015-12-05
399:2021-03-04
339:References
329:Wine fraud
316:California
295:cult wines
248:Background
202:rare coins
73:neutrality
36:improve it
649:162200636
322:Drawbacks
277:fine wine
242:good wine
145:talk page
84:talk page
42:talk page
878:Archived
840:cite web
627:: 1–19.
312:Illinois
291:Burgundy
287:Bordeaux
206:fine art
77:disputed
305:History
196:, like
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641:300648
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238:market
222:stocks
208:, and
645:S2CID
637:JSTOR
488:(PDF)
234:value
226:bonds
853:help
766:2012
738:2012
705:2012
677:2012
586:2012
573:ISBN
552:2012
539:ISBN
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450:2012
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