It might be hard to think about the long term amid a global pandemic, a grape glut in California and tariffs on certain European wines. And yet, people are buying more wine than ever. So, is this a good time to invest?\r\nThe Pros\r\nAnthony Zhang, cofounder/CEO of wine investment platform VinoVest, says that the factors that drive the wine market\u2014scarcity, supply and demand\u2014are different than those that drive the stock market.\r\n\r\nWine is inherently a long-term commodity that gets better as it ages, so its value only goes up, says Zhang.\r\n\r\nHe points out that many restaurants are liquidating inventory, so rare, allocated bottles are hitting the open market. Wineries are also releasing library wines or offering futures at a lower price.\r\n\r\nProducers are playing the market right now, too. Take, for example, B\u00eacheur, a new project by Michael Terrien, winemaker at Obsidian Ridge and Terrien Wines.\r\n\r\nSeeing the recent surplus in California, he offered to bottle and sell friends\u2019 wine under the B\u00eacheur label. This led to the creation of a dynamic pricing model\u2014each bottle on the site has a detailed graphic\u2014to sell Mt. Veeder Syrah and Oakville Cabernet Sauvignon, among others, at a fraction of their normal prices.\r\n\r\nThese don\u2019t have the labels that make a wine collectible, but Terrien\u2019s model is a great way to get high-end, drink-now wine on the cheap.\r\n\r\n\r\nThe Cons\r\nRob McMillan, founder/executive vice president of Silicon Valley Bank\u2019s wine division, agrees that it\u2019s a good time to invest, but with a few caveats. Tariffs on some imported wine require a higher buy-in.\r\n\r\nLonger term, societal changes could affect investments, too. McMillan points out that baby boomers are beginning to retire, and their discretionary funds may be allocated elsewhere.\r\n\r\nThere\u2019s also a question about the drinking behaviors of millennials.\r\n\r\nAccording to market research firm Wine Intelligence\u2019s 2020 Landscapes report, the number of regular wine drinkers in the U.S. has decreased by 11 million since 2015. People ages 21\u201334 account for 77% of that decrease. There\u2019s concern about how many people will buy fine wine in the future.\r\n\r\n\r\n\r\nDanny Brager, of Brager Beverage Alcohol Consulting, urges wine investments to safeguard the industry against the rise of alternative beverages.\r\n\r\n\u201cI would suggest that not investing in wine yields to competitive forces,\u201d he says.\r\n\r\nOf course, there\u2019s no tidy answer as to whether or not now\u2019s the right time to invest in wine, but as Zhang says, if worse comes to worst, you can always drink it.