Presently the trend of investments moving up and down is still happing in a lot of investment markets during the first quarter of 2011 but there is a good reason to be cheerful in regards to how wine has performed so far this year during this period. Last years Liv-ex report which shows the benchmark for wine investments reports a gain of over 40% of the top 100 fine wine index, and the top 50 actually rose by over 55%. To give you an idea Gold went up by just over 30%. Hopefully this looks good for the future of fine wine investment and you may ask yourself – will it constantly perform better than gold, well we will have to see in regards to that question.

The cheaper end of the range were in high demand in certain far eastern markets and it is thought that this trend will probably continue in the same fashion during this year and the next few years afterwards. It is always a good idea to keep wines in your portfolio from within a range of  the expensive and less expensive wines.

Some experts in the field are predicting very high returns based on the figures of the 2008 Lafite Rothschild cases, in which this wine had profits soaring over 400 percent, however this is not seen very often but it does have the experts predicting returns in the mid twenty percents and with China and the US in the market the auction prices look set to rise.

The majority of the professionals are advising to stay in the long game rather than looking for short investments, so having a strategy plan of investing between 5 to 10 years is a good idea and this is based on the strong current market and how having a strong base normally helps provide a nice steady long term investment.

The Lafite Rothschild continues doing very well at the top end of the performance charts in the initial growth category, during 2010 it remained as one of the most traded across all the different vintages. The interest in these wines is predicted to continue in the same vein, and Haut Brion Chateau, which has generally been a slow mover in first stage growths showed over twenty percent returns during last year (in the best vintages) so this one maybe worth adding to the list of your portfolio. Please remember having the correct advise will help your investments be good ones.

Everyone is now talking about the Chinese, The US has a high demand but is not trending as quickly as China.
Russia and Europe are a little quiet currently but the Live Ex went up by twenty-four percent in 2010 mainly due to buyers from China.

The Chinese love brands rather than vintages and currently Chateau Lafite is selling at double the value of similar quality wines from the Chateaus Latour, Mouton, and Margaux. Back around 1996, Fifteen years previous was when stocks of Chateaux Lafite were first imported in to China and this is the main reason for it’s popularity there with it being the first luxury fine wine in the marketplace. There is a strong rumour that officials in the Chinese hierarchy have a love for this brand and a glass or two is poured when doing business to complete the deal.

So what are the trends looking like for 2011? Well it is looking like a good investment year with smaller but higher quality crops in Bordeaux. Previous good years were 2000, 03 and 05 mainly due to the vineyards conducting better techniques and using better technology and 2009 was one of the best years. So it is looking a good idea to invest now to catch the next big swing on the market which is looking like it will be determined by the Chinese market, which in turn means those who invest in Lafite will probably prosper.

But please remember to  always bear in mind it is the best idea to keep a wider range in your wine investment portfolio rather than have all your eggs in one basket.

With the city not performing in recent times regarding investments like the ISA, pensions, Peps, stock and shares and with the property market also in the decline investors are looking for alternative forms of investment.

It is a relatively small market but has outperformed most of the other traditional forms of investment

So in difficult times wine investment has become a safe place to invest, it’s growth has been between 15 to 20% over the last 30 years and it has the benefit of being a tax free investment, knowing which wines to invest in is the key to your success as not all wines have these great figures of growth.

A lot of wine investors like to buy double, one for investment and one to enjoy as they see the prices increase in value.

The wines should see a continuing increase in value due to the Robert Parker 100 point system that he devised back in 1980. Recent trends have seen London’s market moving towards the US and now other places are appearing in the marketplace like Hong Kong, Asia, Russia Brazil and India all with wealthy individuals investing in this lucrative market and this will help to it keep in doing well.

Here are three tips to get you off an running that should be considered when starting in wine investment.

Number 1:
You need to find a reputable wine merchant broker who has the know how and is helping to guide you in the right direction for investment.
Making sure the company possess extensive knowledge and have been in the trade for some time.
They can help you determine which are the best fine and rare wines to invest in. This varies over time so checking the percentage profits over time is a good place to start. Once you have identified suitable wines for your portfolio it will make life a lot easier.

Number 2:
You need make sure the wines are stored in suitable surroundings, your broker should be able to help you with this, there are well known storage areas which are kept at the correct temperatures and conditions to suit the wines. Making sure of this will help to avoid any risks of spoilage and using a knowledgeable broker will ensure that the correct conditions are maintained.

Number 3:
Having a good different selection of wines is a good idea in your portfolio as this will cover you in case the profits aren’t as good in one of your choices. If you are investing in a type of wine, then it can make the most profit because people can taste different wines.