Newbie/wannabe Collector Help, Storage and Provenance Options

[pghgator]

I am new to collecting wine and would like advice on the following questions.

1) If I buy wine from a known national retailer (ABC Liquor/Total Wine, etc) is the register receipt good enough to establish provenance or do I need more documentation from them all the way back to the winery and/or distributor?

2) Storage: I'm planning on buying a wine cave/refrigerator for storage and would like to know if it would be best to send the expensive wines to a storage facility or is it ok to keep them at home? How will keeping expensive/collectible vintages in a home wine cave affect it's value vs. a storage facility? ( I live in a condo so these are the only alternatives).


More info before you answer these questions. I plan to buy wine from both a consumption standpoint and collectors view. Most of my drinkable collection will consist of bottles in the $50-$100 range with most over that solely for later resale. An example would be Cakebread or Silver Oak Cellars Cab's which would be consumed through the hold period or possibly sold later in one scenario. In the other scenario a Mouton Rothschild ($700+) or vintage Champagne such as a 96 Krug ($300+) which will be solely purchased for investment/resale.

Further I'm not sure what I do with my mid-range collectibles such as Joseph Phelps Insignia ($170). Do I drink it or sell it later? Again, what will help me retain the most value for later resale?

Lastly, most of my early purchases will be single bottle's (odd lots I guess) as I cannot afford case lots of expensive collectibles not to mention I'm sure they would be extremely hard to come by.

Any advice for my situation would be appreciated.

[Jeannie Lacombe]

1) I think it is always a good idea to keep records of where and when you bought your wine so a register receipt is a good start but it is not a guarantee of good provenance (unless you bought it direct from the Chateau and you can prove you have stored it properly since day one). You should focus on buying from reputable retailers who have long term relationships with importers or distributors who can assure you of proper provenance.

2) If you have space constraints but you are going to purchase a temp/humidity controlled unit, then you will need to think of the home space as the "drinking" area and definitely invest in long-term storage for your collectible wines whether you drink or sell.

If you have mid-range wines, you may want to consider the cost involved in keeping them in storage until they sell. If you have single bottles that you are not sure if you are going to drink or sell, it may be wise to make room for them in your home wine unit. You did not mention the vintage for the Insignia but it does have resale value so depending on the provenance and where you have stored it since, it may be worth putting up for sale.

Regarding single bottle lots, it is always better to have quantity but if you sell through Marketplace, Wine Bid or on consignment at a local wine shop the single bottles may not be an issue. Again, if it is in good condition and you have a buyer, it shouldn't matter.

If you are really looking at wine as an investment, it is best to buy in case lots or six bottles as a minimum. I would recommend making sure you know something about where it was sourced, ask about how it was stored before you got it and then make sure you store it properly going forward.

[Alexi]

First thing is first. You have to know everything about these wines that you want to lay down as an investment. Its easy to look up on the internet the "#1 Bordeaux" and buy a case, 2 magnums, ect. and expect to sell them. It takes patience, $$$$$$$, and most importantly, purchasing the right wine in the right vintage.

Jeannie said everything perfectly. I would just add these few things.

Historically speaking, you should look at the 5 Premiere wines of Bordeaux and if you choose to, ALWAYS buy them in futures. Allthough I do not invest in wine, I drink it, I purchased 2 cases of Latour and 3 cases of Lafit as soon as the 2000 futures where available and if I were to sell them now............WOW!!! PROFIT!!! But you don't know how well a vintage will do or what it is capable of until 2-4 years after it is released. And mine are not for sale. Haha.

Futures, futures, futures!!!!!

Storage at home or a wine locker are both just fine.