Starting a wine collection is exciting! Being a wine collector is a venture that not only enhances your appreciation for fine wines but also serves as a journey through the rich tapestry of cultures, regions, and flavors. It doesn’t matter if you are a newbie or somewhat advanced in the world of wine, as wine collecting is accessible to everyone. You will also find that there are plenty of experts who are more than willing to help accelerate your knowledge. Here's a short read on how to help you embark on this delightful hobby.
1. Educate Yourself
The first step in starting a wine collection is to educate yourself about wine. This doesn't mean you need to become a sommelier overnight, but having a basic understanding of different wine regions, grape varieties, and wine styles will greatly enhance your collecting journey. There are countless resources available, from books and online courses to wine tasting events and seminars. Take advantage of these to build a solid foundation of wine knowledge. Many of these books are shorter reads, while some are very much focused. Go wide, then go deep.
2. Determine Your Purpose
Before you start buying, think about why you want to collect wine. Is it for personal enjoyment, investment, or perhaps a bit of both? Your goals will influence the types of wines you collect. For personal enjoyment, you might focus on wines that you love and want to explore further. If you're looking at wine as an investment, you'll need to research and target wines that have a proven track record of appreciating in value. Both require discipline but the practice itself is quite different. Without understanding your purpose you may find yourself in possession of a lot of wine that is near expiration or undesirable if your palate changes.
3. Set a Budget
Wine collecting can be as affordable or as lavish as you make it. It's important to set a budget early on to keep your new hobby enjoyable and financially sustainable. Remember, collecting wine is a marathon, not a sprint; you can always expand your collection over time. Some people recommend that you buy someone else’s collection to accelerate the process. While this may be a pro, there are cons to this scenario. You may be forced to consume a lot of expensive wine in a short window, or some of this wine may be way too young to consume. Collector wines can be generalized to be as low as $50 per bottle, however some wines that can appreciate can be as high as $10,000 or more per bottle. Knowing your budget and your purpose together will help you define a strategy that will serve you well in the long run.
4. Create a Storage Solution
Proper storage is crucial for maintaining the quality of your wine. If you're serious about collecting, consider investing in a wine fridge or cooler that can maintain a consistent temperature and humidity level. Don’t just buy any fridge. Wine pros know which ones will serve you well for a longer time. If you plan to drink these wines within 2-3 years, then you may be able to reduce the size and cost of storage. If you're collecting more expensive bottles, or if you're in it for the long haul, you might want to think about professional storage options or building a wine cellar. Offsite storage locations can cost hundreds of dollars per month for precise temperature control. This level of precision and maintenance adds value to the provenance of the wine. This is especially true if your intention is to collect to invest, as most auction houses or wine brokers will do their due diligence, and wine storage is a big factor. Also bear in mind that wine storage costs may be able to be deducted as an expense, reducing capital gains obligations, come sell time.
5. Start Tasting
One of the best parts of collecting wine is tasting it! Start attending wine tastings, join a wine club, or simply start buying a few bottles to try at home. Tasting a wide variety of wines will help you understand your own preferences and discover what types of wine you might want to collect. If you don’t know where to start, then pick a restaurant with a nice wine list and ask to speak with their Sommelier. Most Sommeliers are very well connected to the wine drinkers in their community, and they are usually very welcoming groups.
6. Buy What You Love
While it's important to consider the potential for appreciation in value, at the end of the day, your wine collection should bring you joy. Collect wines that you love and are excited about. This will make your collecting journey much more rewarding.
7. Research Before You Buy
When you find a wine, you're interested in adding to your collection, do a bit of research first. Look into the wine's production details, its winemaker, and the vintage. Read reviews and check its aging potential. This will help you make informed decisions and build a collection of quality wines. It is also very helpful to review vintage charts that tell you it was a good year for fine wine in a particular region. This helps guide you, so you aren’t so focused on wine scores. I usually buy wine by following producers, vintage charts and by performance of how particular wines mature. Don’t rush to collect or invest in trends.
8. Diversify Your Collection
Just like with any other form of collecting or investing, diversification is key. Don't put all your eggs in one basket. Collect wines from different regions, grape varieties, and styles. This not only makes your collection more interesting but also helps mitigate risk if you're collecting for investment.
9. Record Keeping and Inspection
Keep detailed records of your wine collection. This can be as simple as a spreadsheet or as sophisticated as a wine collection app. Include information like the wine name, vintage, purchase price, and tasting notes. Good record-keeping will help you manage your collection and make informed decisions about when to drink or sell your wines. Keep receipts to establish provenance and chain of custody. Inspect what you buy. Sometimes you’ll find that opening a wood case of wine will reveal a lot about how a wine has been stored. In my experience opening a banded case won’t affect the provenance of a case of wine. If you are concerned about this, take a video tape yourself opening it. The downfall to not opening a case of wine to inspect labels, corks and capsules is that when it comes time to consume or sell the wine, you may have bought someone else’s problem (improperly stored wines = $0 and a lot of disappointment).
10. Connect with the Community
The wine collecting community is vast and welcoming. Connect with other collectors, join forums, and attend wine events. Sharing experiences and knowledge with others can provide valuable insights and enhance your collecting journey. You may also find this is an excellent way to learn about deals or find some buy/sell/trade opportunities.
11. Consider the Resale Value
If you're collecting wine as an investment, always consider the resale value of the wines you're purchasing. Look for wines that are in demand, have limited production, and come from reputable wineries. Remember, the wine market can be volatile, so it's important to do your research and not expect immediate returns. Most wine collectors who invest in wine are looking at a 10 year buy-sell horizon.
12. Enjoy the Journey
Finally, remember to enjoy the journey. Wine collecting is a personal adventure that should bring you pleasure and satisfaction. Don't get too caught up in the details or potential returns. Savor each bottle you add to your collection and cherish the experiences and memories they bring.
Starting a wine collection is a rewarding endeavor that opens a world of flavors, cultures, and histories. By following these steps, you'll be well on your way to building a collection that reflects your personal taste, goals, and aspirations. Whether you're enjoying a bottle from your collection on a special occasion or simply admiring the bottles you've curated, wine collecting is a hobby that can bring a lifetime of enjoyment.