WSTA (Wine & Spirit Trade Association) launches wine investment guide

WSTA launches new wine investment guide 

The WSTA has launched a guide to help the growing number of consumers who are investing in fine wine, either as collectors or as part of an investment portfolio.  The guide aims to help wine buyers make the right checks before they part with their money.

Recent years have seen a growth in fine wine purchase but the potentially attractive returns have also sadly attracted some fraudsters, particularly in relation to en primeur - wines available for purchase prior to bottling and release onto the market.

The WSTA guide, available online at http://www.investinginfinewines.co.uk/, provides tips to help consumers ensure they don't become victims of fraud.  They include:

"    Choose a reputable wine merchant, checking their trading history, track record and address
"    Verify your order by comparing prices, checking provenance, condition of storage, packaging and delivery. Remember, reliable en primeur traders don't sell before producers have announced their prices
"    Look after your investment, ensuring wine is securely stored in the right conditions and fully covered by insurance
"    Understand the small print, including tax on investment, commission and handling fees and the paperwork you'll receive covering your purchase

The WSTA cautions consumers to be wary of any businesses using hard-sell tactics such as offering guaranteed profits or fast returns.  Fine wine should be seen as a medium to long term investment and as with all investments the value can go down as well as up.

Anyone who thinks they may have been a victim of fraud when buying fine wine should contact the WSTA Fraud Prevention Unit  fraudalert@wsta.co.uk or report it to Action Fraud http://www.actionfraud.org.uk/report_fraud.

WSTA Chief Executive Jeremy Beadles said:

"Buying fine wine is a pleasure and can be a profitable one but as with any type of investment it makes sense to take some precautions before you part with your cash.

"Our website guide provides some simple tips to follow to ensure you don't get caught out. Making some basic checks about the company you're dealing with and its track record is a good place to start."

Met Police Fraud Alert site

The Metropolitan Police has a Fraud Alert site that highlights their Sterling initiative:

'Sterling is the Metropolitan Police initiative to tackle Economic Crime throughout London. By working together with individuals and organisations, from all levels of the private and public sectors, Sterling aims to make London safer from all types of Economic Crime. Innovative new techniques are being developed to prevent, disrupt, and prosecute fraud related offences.'

http://www.met.police.uk/fraudalert/index.htm

Also on the site is a recent advice about high yield investments:

'The MPS would give the following advice to anyone offered high yield investment opportunities in products that are not tangible:

Beware anyone cold calling offering investment opportunities

Before deciding to invest in a particular product check with an established company or other suitably qualified person for advice. (For example if you are investing in wine contact a reputable wine merchant.)

Be prepared to make extensive enquiries into the source of the product to establish its credibility as an investment.

If a high return is promised it should be viewed with suspicion particularly in the current economic climate.

If the investment is one where the product will be kept for you either elsewhere in the world or in the UK you should always be able to request to see the product at any time.

If it sounds to good to be true it probably is.'

http://www.met.police.uk/fraudalert/news/high_yield_advice.htm

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Interesting that they highlight wine contracts.

Ties in with the advice given at the time of the further Nouveau World Wine arrests:

Detective Chief Inspector Robin Cross, head of the Fraud Squad, said: "This kind of investment fraud is becoming far too common. People from all economic backgrounds are being targeted and persuaded to invest in what appears to be a sound financial opportunity.

"We would advise those considering investing money, whether it be a small or large amount, to do their research and be sure that the companies or individuals they are dealing with are reputable and legitimate."