The first port of call for anyone thinking about investing in wine should be www.investdrinks.org.

The website, run by a journalist called Jim Budd, is dedicated to showing the dangers of drinks investment.

The site contains a list of all the companies that have been shut down by the British Department of Trade and Industry, as well as up-to-date news fingering others who mislead consumers by charging excessive prices.

Another site, www.winesearcher.com, has a search facility that allows potential investors to check the market price for individual wines from a particular vintage.

Stick with wines from the Bordeaux region and remember that a wine from a respected château in a bad vintage is likely to be a worse bet than any wine from a good vintage.

Check that the merchant or broker is an established company. Some fraudulent firms may offer the right wines at the right prices but disappear or are wound up before they even purchase the wine, leaving their victims out of pocket.

Do not be rushed into making any investment. Beware of any company that cold calls or sends unsolicited mail, promising huge returns and freebies such as bottles of champagne if you sign up quickly.

If you are investing through a broker, read the terms and conditions of any investment plan and watch out for lock-in periods, upfront or exit fees or early redemption penalties.

If you are investing through a wine merchant, shop around for both initial prices and the sales commissions they charge at the end when the wine is sold on.