Let’s talk about wine investing

Published: 30th December 2021

Wine consistently outperforms other alternative assets. Vinovest makes wine investment easy.

 

Back in 2018, in a Sotheby’s auction room in New York, a bottle of 1945 Romanée-Conti was put up for sale.  By the time the auctioneer’s gavel hit the block, a private collector had agreed to pay $558,000 for the single bottle of wine. 

 

So why would someone pay the equivalent of a one-bedroom flat in London for a single bottle of wine? 

 

Although not every bottle of investment grade wine will sell for six figure sums, they will all appreciate in value over time, earning handsome returns for those smart investors who are willing to play the long game.

 

Why invest in wine?

 

Fine wine is gaining steam among investors as an alternative asset. It offers a low correlation with the traditional markets, steady returns and bond-like volatility. Savvy investors are increasingly turning to investment-grade wine as a way to diversify their portfolios.

 

  Fine wine outperforms most global equities.  Wine as an asset class has yielded a 13.6% annualized return over the last 15 years.  Even with global stock markets experiencing record-breaking runs, they have not been able to keep pace with the market for fine wines. 

 

  Wine has low correlation with traditional markets. Wine doesn’t concern itself with inflation or interest rates. Its value is driven by consumption and ever-decreasing supply of vintage wine.  That is why during the 2008 financial crisis, the S&P 500 fell 38.5%, while the Liv-Ex 1000 (fine wine index) fell only 0.6%.

 

    Fine wine has low volatility. The longer you hold on to wine, the less volatile it becomes.  Low volatility can mean more peace of mind for investors.  On average, wine has about a third of the volatility of stocks.

 

  You have tangible ownership. When you only own stocks, bonds, or mutual funds, you really only own them on paper. Not the case with fine wine. As the sole owner, you can keep, sell, or even drink your investment, should you desire!

 

Welcome to Vinovest 

Vinovest is a modern, simple way to invest in wine.  We combine world-class wine expertise with technology to make wine investing friendly and approachable. Our Master Sommeliers partner with our unique AI algorithm, which uses thousands of data points to identify the best investment grade wines for your portfolio.  Through our vast network of wineries and merchants, we are then able to purchase your wine for the most competitive prices, guaranteeing you the greatest chance of impressive returns. 

 

This year alone, the average Vinovest portfolio has seen returns of 13% on their investment. We simplify what has long been a complicated and closed off industry.  

 

When working with Vinovest, you don’t have to be a wine aficionado to build a wine collection that could rival any cellar in Napa Valley or Bordeaux.  And best of all, these wines can generate double-digit returns over the investment period.

 

Not only will Vinovest select the best investment grade wines for your portfolio, but we will take care of storage, authentication and insurance for you, so all you need to do is sit back, relax and enjoy as your portfolio value grows, year after year.

 

As an SWM subscriber, you will have access to a dedicated portfolio advisor to guide you through your wine investment journey, regardless of the tier you join.  Furthermore, all SWM subscribers who sign up for Vinovest will not be charged any fees for the rest of the year.

 

With Vinovest, because you physically own the wine, if at any point you decide that you would like to drink it, we can have it shipped directly to you.

 

With a global economy still reeling from an ongoing pandemic, Brexit uncertainty and increasing inflation amongst other factors raising concerns about the markets, there has never been a better time to invest in wine with Vinovest. Sign up today for free and speak with one of our dedicated portfolio advisors to start your wine investment journey.

 

For more information