Firstly, you have to be very careful about buying fine wine purely as an investment. The timing of your purchase is important, as is the decison as to which wines to buy.
But if you can get the combination of the right wine purchased at the right time, then you have the potential to make very impressive returns.
Wine is seen as an "investment of passion", similar to fine art, vintage cars, rare stamps or coins.
In the 10 years to September 2012, fine wine prices as measured by the Livex Fine wine index rose by 166%. This compares very favourably with most investments in shares or property, but less well with the price of gold (+434%), classic cars (+395%) or rare coins (+248%) over the same period.
If you would like to find out more about investing in fine wines, please feel free to contact Paul@realwines.ch as he has significant experience in this area.