Investing in wines....is it a scam?

[Jerry D Mead]

Ronan...If they're telling you that you can buy wine, pay them a commission to do so, pay them a fee to store it, and that at the end of a year you can sell for a profit...it is indeed a scam.

It's not that wine (some famous collectables, at least) doesn't increase in value, but rarely is it all that dramatic, and then there's the problem of how to sell it.

First you have to be able to find a willing buyer. Then you have to find a way around state laws banning anyone from selling wine without a license.

Sure you can sell through licensed auction houses, and California law permits selling to licensed dealers, but once again you have either selling costs or a potential customer wanting to buy at wholesale.

If you really get into the collecting thing because you love wine, then you can often swap your "collected," now more valuable wine for some wine you want that you don't have.

Or you can have the pleasure of drinking wines that are now very expensive for which you paid a pittance.

But if you want to make a profit buying and selling wine...buy a wine shop...and even that is risky!

JDM