A Secondary Market is a term used to describe the buying and selling of assets that are already in circulation, as opposed to the primary market where securities and assets are created and sold for the first time.  While the stock market is the most well-known example of a secondary market, it is not the only one. Another example is the fine wine market, where wine is resold by one party to another. In this market, investors can buy and sell bottles of wine that have already been released, rather than investing in wine that has yet to be produced.   How does this relate to wine?  In the primary wine market, wine is sold by the producer to the end-consumer. Once the wine is bought, it will eventually be consumed, and a lot of wines never leave this primary market.   However, at the higher end of the wine market (often referred to as the Fine Wine Market), an original buyer may decide to sell some of their wine which has appreciated in price to free up capital. This is where the secondary market comes in. On occasion, this will be a collector liquidating a part of their collection to purchase other wines, and sometimes this will be an investor who is looking to realise the gains that the wine in their possession has made.  The Secondary Wine Market  When an original owner sells excess wine, a secondary market is created. Typically, the original buyer will sell back to the merchant from whom they purchased the wine. The merchant may then offer the wine to another merchant or client who has an interest in the wine.   The trades for a single bottle or multiple cases between different merchants and collectors can be numerous, and at different prices, before the wine eventually gets consumed. The value of the wine will usually change over time, either increasing or decreasing depending on market demand and other factors.  The secondary wine market is used by both wine collectors and those interested in wine investment. It is important to note that not all wine is suitable for the secondary market. Only the best wines from the top Producers have the complexity and components to age well, alongside the demand for their prestigious wines. A wine needs to have sufficient volume as well as demand to be viable.  Vintage Cellar: a bespoke offering tailored to your needs  Whether as a wine collector or investor, as experts in the field the Vintage Cellar team can advise you on exactly how to navigate your fine wine journey. All of the wine you can access through Vintage Cellar comes directly from the Producer, meaning you can be 100% reassured of it’s provenance, and is therefore considered the ‘primary market’.   We only work with the top producers in Bordeaux, Burgundy and across the world, so you can be sure that there will be plenty of opportunity to sell your wines on at a higher price on the secondary market. Whether that’s to buy up more of your favourite Chateaux’s latest En Primeur offering, or to capitalise on the appreciation in your wine investment portfolio, our wine experts are here to advise you.   Book a free consultation with one of our team today, or download our guide to investing and collecting below.