How do you tell if the wine you're drinking should be savoured now, or saved for later? Our expert guide will help you choose wisely when it comes to investing in the perfect drop.

WORDS BELINDA JACKSON

We invest in art, property and stocks, but wine investment s possibly the sexiest form of investment around. Why?

To borrow the words of Australia's most famous winemaker, Peter Gago of Penfolds, "If your wine doesn't make money, you can drink it!"

Like any form of investment, you need to do your homework before pulling out your wallet, and correct cellaring is absolutely essential to success. According to Andrew Caillard, executive founder of Australia's top wine auction house Langton's (www.langtons.com.au) and one of Australia's foremost authorities on wine investment, most investors buy on the principle of good vintage/short supply, and hope strong demand will push up the price on their investment.

The big-ticket Australian wines on the market are two South Australian shirazes - Penfolds Grange and Henschke Hill of Grace, with the first ever Grange, from 1951, fetching over $50,000 on the few occasions the rare liquid comes to market - Australia's priciest drop!

You don't have to spend big to get great South Australian shiraz, with acclaimed winemakers issuing wines that will age well from under $20, although Andrew warns that while there are extraordinary results for great bottles, demand is sluggish for unproven or unknown wines.

Cellar Dwellers
The top three Australian varieties that best reward extra time in the bottle with careful cellaring are shiraz, semillon and cabernet.

Shiraz is considered the granddaddy of all cellaring wines and is number one in the auction market, with top performers enjoying up to 50 years In the bottle and still developing and maturing. Good years and regions include Barossa 2004, 2005 and McLaren Vale 2004, 2006.

Semillon is, according to cellar master and restaurateur Frank Wilden, the best Australian white wine to cellar - in particular semillon from Hunter Valley, especially the 2003 and 2006 vintages. "It will dance the socks of most Australian chardonnay at 10 years or more of age," he says.

Cabernet follows closely behind shiraz at auction. "The best examples from Coonawarra and the Margaret River evolve beautifully in the bottle for up to two decades and beyond," says sommelier and Home Beautiful drinks editor Karen Anderson. "In exceptional years, I believe they're up there with the best from Bordeaux at a fraction of the price." Keep an eye out for Coonawarra Cabernet Sauvignon 2004, 2005 and 2006, as well as Margaret River Cabernet Sauvignon 2005 and 2007.

Where Do The Best Wines Come From?
According to wine bible The Decanter, 90 per cent of the world's top investment wines come from Bordeaux in France. Master of Wine Andrew Caillard, who sits on a wine advisory board for Deutsche Bank's Asian wine funds, says the price for Grand Cru Burgundy is an esoteric thing: "Just think of a price, double it and multiply by the number of your children." The biggest names include Latour, Haut-Brion, Lafite and Margaux.

Penfolds chief winemaker Peter Gago, a self-confessed champagne addict, goes offshore and adds the French classic to that list, although for him, it's purely a drinking investment, not a monetary one.

Karen Anderson adds riesling to the list, in particular those from the Eden and Clare Valleys in South Australia, which can be laid down for decades.

Too Hot To Handle
Wine is a delicate creature that continues to mature in the bottle, so it should be cellared at between 14ºC and 18ºC with 65 to 75 per cent relative humidity. Avoid temperature fluctuations, as well as too much light exposure or even vibration. Investors always look at an aged wine's cellaring record. There are two ways you can go: DIY or managed cellaring.

DIY: If you have a cool, dark spot in the house where wine won't be disturbed, you can lay down your buys, but most people find that a temperature-controlled wine-storage cabinet is a safer option. The stylish French-made EuroCave wine cabinets, 1800 733 621, are available in a variety of sizes, designs and finishes and are designed to mimic a deep cellar - they can also sit under your kitchen bench! Vintec or Transtherm, 1800 666 778 or www.transtherm.com.au, also produce great wine cabinets.

Managed cellaring: Wine Ark, 1800 111 275, Australia's largest managed wine storage provider - and other groups including Wine Vault, (02) 9460 6674, Liquid Assets, (03) 9335 0000 and Wineaway, (07) 3852 1891, can take all the pain out of cellaring at around $3/bottle/year.

Golden Rules

• Buy quality earliest and cheapest - a staple of any investment market.
• It's all about the vintage, the particular period the wine is harvested: every year is a different story, so research your vintages before you buy.
• Don't borrow money to invest in wine: the Australian wine market is still in its infancy and should only be a small part of your investment portfolio.
• Buy in whole cases or magnums (1.5 litres) or larger.
• Invest in a diverse cellar: it's more enjoyable and easier to sell.
• Don't bank on a short-term investment. This market's all about time.
• Form a relationship with your merchant - better still, visit the vineyard.
• Purchase wine on release for the best price.

Where To Buy?
Auction houses such as Langton's or dealers and cellarage experts like Wine Ark , 1800 111 275 or www.wineark.com.au. You can also buy through investment brokers and even wine investment funds.

Profit Or Pleasure?
It's the ultimate dilemma: sell or drink your investment? Consider enjoying the best of both worlds; buy a case, drink half and cellar the other half for later sale - the proceeds could keep your cellar going. "Investing in wine can be for monetary reasons and by keeping it and backing it, will give you an extraordinary return on pleasure," says Penfolds chief winemaker Peter Gago.

Doctor's Orders
Penfolds runs health checks on its red wines over 15 years of age across Australia every two years. Corks deteriorate with age, affecting the wine's quality, so it's a chance to get the experts check your investment and, if your wine is in acceptable condition, the process is endorsed by speciality wine auctioneers and a Penfolds winemaker. Here are the upcoming dates:

Sydney August 12 to 14
Adelaide August 28 & 29
Melbourne August 20 & 21
Perth November 18
Brisbane November 25 & 26
See www.penfolds.com for more details.