Vint has published a blog post that discusses a question that most of its investors might have had at some point – “Which factors determine the success of a wine investment?”
The blog post begins by highlighting the lucrative nature of wine investments and how the industry has fared over the last decade. According to the Knight Frank Wealth Index, fine wines appreciated in value by over 120% over the past ten years. Vint says that wine investing offers a great chance for an investor to diversify their portfolio so that it is more resilient to changes in the market.
Investors who have been exposed to the global financial market for a while now might remember the tumultuous time following the 2008 financial crisis. The volatility of the market sparked by that crisis and the generations of wealth that it wiped away, compelled investors to look for far less risky avenues of investment. Vint says that wine investing is a relatively low-volatile investment that has given investors a steady return of 9% over the past years.
There are two ways to approach wine investing. The first one is buying one’s own wine and building up the infrastructure to store and support it for a long enough period until it becomes viable to sell. This has been the traditional way that wine investing has worked and is still a popular form of investing amongst the upper strata of society. However, this requires a more hands-on approach that requires a lot of free time and an interest in wine collecting itself. The hands-on investor has to study the best practices for storing and aging wine which is why it has mostly remained a pastime of the wealthy. The investor must also commit to buying a large quantity of wine, to begin with (typically 6-12 bottles). The steep upfront inventory, space, infrastructure, and insurance requirements keep this method out of reach of most investors.
Vint is the brand new face of fine wine investing as it takes the complicated setup required to maintain one’s own personal wine portfolio out of the equation, making the entire process easy and seamless for any investor. The company will take care of all the storage and insurance requirements. It even provides experts that carefully craft high-value collections that keep in mind the traditional movements of the wine market while also incorporating current trends. With Vint, a novice investor does not have to invest time and effort to keep up with the happenings in the wine industry and can focus solely on the value their investment appreciating over time.
Vint’s blog post then talks about the factors that make for good wine investment. The first factor is the scarcity of the product. Products that are harder to get a hold of and have limited, exclusive production are better suited to collecting because they are more likely to appreciate in value. This means only the products that are grown in specific regions of the world under local conditions and produced in small artisan quantities are worth investing in. Secondly, the type of wine also has a big impact on its future value as not all types of wines get better as they age. Red wines are the best for investment as their flavor and aroma improve as they age. Other contenders are sparkling wines and white dessert wines which are also great for investing in.
The blog post ends with Vint asking investors to follow common-sense precautions when purchasing an alternative investment such as a wine portfolio. It says that though wine has remained relatively stable compared to the traditional stock market, current market trends should be studied before committing to a full investment. Finally, when making the initial purchase one must consult a classification system that guarantees that they are putting their money towards a high-quality wine that will retain its quality as it is stored, will age better, and net a profit for the investor.
Vint is the world’s first fully transparent platform for anyone who wants to invest in fine wine and spirits. The company says that its mission is to democratize the high-returning asset class of wines and spirits with SEC-qualified collections. They are growing their business rapidly and any clients interested in signing up can do so on their website.
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For more information about Vint, contact the company here:
Vint
Nick King
(804) 833-7974
contact@vint.co
Richmond, VA
