Wine has existed for hundreds of years now, and the concept of investing in wine has been in practice for quite sometime. However, it started gaining worldwide attention only after the Cold War. At present, the global demand for wine has increased tremendously. Financial experts say that wine has performed better than the FTSE 100 and the Dow Jones, and its performance isn't affected by the volatility of the stock market. Investing in wines can mean two things - buying expensive wines and saving them for a special occasion, and purchasing investment grade wines and selling them at a later stage for a better price. The most in-demand investment wines are Bordeaux and Grand Cru Burgundy; other important brands are Napa Cabernet Sauvignon and Cuvée. It is important to know that not all wines improve with age, and those that do require constant monitoring to determine their stage of maturity at any given time. This task can only be performed by professional wine tasters, and the results are closely monitored by the press and wine investors. Investment grade wines are sold off at auctions held mostly in Chicago and London. Wine enthusiasts and serious investors always keep a tab on these auctions to know the current retail pricing of popular wines, to ensure its value at any given moment. Although a tedious task, an easy way to keep a tab on the price of all popular wines is follow Wine Price File. Another common way of investing in wines is buying them even before they are bottled. This process is called 'Futures'. However in Futures, investors do undertake a high level of risk as the value of the wine depends on the demand and currency fluctuations. It is important that investment grade wines should be stored in optimum conditions to keep them protected from sunlight, humidity, and moisture. Hence, most investors store their wine in professional warehouses that guarantee protection from any natural and unnatural damage, theft, and intruders. For those who feel that they lack the expertise of investing in the wine business, they can directly put their money in wine investment funds. The minimum amount required can start from $20,000 to $50,000. Here are some reputed names in the market. ► Only deal with reputable and established merchants and suppliers. The market is filled with rogue traders, who eventually get caught leaving many consumers in jeopardy. ► Before dealing with a wine investment fund, check their track record. Inquire about the various products offered, and also check the history of all their funds and portfolios. Pay extra attention to the hidden charges and commissions involved. ► Wine investment doesn't attract Capital Gains Tax as it is considered a wasting asset. Rather than spending money to buy a large quantity of inexpensive cases, it is beneficial to buy a small quantity of expensive wines. ► If you are beginner, always stick to high quality investment grade wines like Bordeaux vintage and Burgundy. Bordeaux wines are the most coveted wines in the investment market. An investor who is looking to get some diversity in his/her investment portfolio should definitely try investing in wine. However, it is important to not invest more than your pocket can handle, and wine investment should always represent only a small part of your overall investment portfolio.