We’ve all heard the stories about the bottles of wine that fetch thousands of dollars at auction and everyone knows someone with an old bottle of plonk under the bed that they’re certain will make them rich one day. But is investing in wine really a good idea?

Making money out of wine. It’s a tempting thought, particularly when you compare it with (pardon the pun) drier forms of investment such as shares or property. But, as always, it pays to do your homework.

It may seem easy. You buy some wine, pop it in the cellar and then, down the track, sell it off at ridiculous prices (such as a bottle of 1951 Penfolds Grange at $50,000 2004). The trouble is that wine, by its very nature, is a complex subject.

One wine writer, Ben Canaider, recently said “People who are into wine shouldn’t invest in wine”. Ben has recently authored a book called ‘How to drink absolutely everything’.

Apart from selecting the wine to invest in, Ben gives some advice on the ‘keeping’ of it. Lesson one for any potential wine investor is the value of a quality cellar. “A cellar has to be 14 degrees celsius or below and constant,” says Canaider. “It has to be around 65 percent relative humidity — and it has to have a lock that you can’t open after 8pm. Otherwise it’s a complete waste of time.”

Paying to cellar your wines professionally is one alternative, but it doesn’t come cheap. At cellarit.com, for instance, prices range from $1.80 a dozen for 200 or more dozen, plus charges for handling (in and out), insurance and storage boxes, plus pick up deliveries, etc. www.winexaccessories.com.au is one such website that offers this service if you are interested in finding out more about it.

Like any investment, there is a risk involved, and investing in wine is relatively high risk. Many of the purchase decisions are speculative Chief buyer, Stuart Barclay from Cellarmasters says “Investing in wine is high risk. “If a wine is not on the Langton’s (www.langtons.com.au) list it’s even higher risk.”

According to Andrew Caillard master of wines, Langton’s customers represent the top one per cent of the wine market, and they spend, on average, $76-$85 a bottle.

“I wouldn’t suggest anyone try to make a quick buck in wine,” says Barclay, adding that you can get started with about $1000 and then build from there. The key, though, is research.

“You need to identify what you want to buy,” he says. “There are two types of people who spend money on wine: the first only wants to invest money and isn’t interested in product. A serious wine enthusiast will put down money every year for his or her cellar. That’s a classic wine investor or wine buyer.”

According to Barclay, the second type has a better chance of a return. “Internationally, you might hit the jackpot one year in three,” he says. “The serious investor will buy every year and ride the peaks and troughs. If he gets a win, he might sell a few cases of that vintage and use the money to refinance the cellar. Where people fall over is when they invest a lot of money in one vintage.”

So, if you’re not put off yet, where should you start? As with all investments, it begins with research. “Read the international wine magazines, visit the online wine sites — find out what’s being bought and sold,” says Barclay.

One of Langton’s Wine Investment maxims is this: don’t leave it to others; understand the market.

Barclay reiterates: “Keep an eye on it yourself — from the market to the wine itself. Even if you choose to cellar with a professional wine storage company, make sure it’s somewhere that you can see the wine if you choose to do so.”

Canaider is blunt. “Don’t do it,” he says. “As the Australian wine market becomes more sophisticated there’ll be a lot of people left with a lot of unsellable wine. You can’t predict what the market will want in 10 years time. The key word in old wine is that it’s old.”