Vint, the world’s first fully transparent platform for anyone who wants to invest in fine wine and spirits, has published a blog post that discusses one of the common questions that it gets fielded from investors who are just stepping into the exciting world of wine investing – How To Value Wine? Vint’s blog post talks about what makes great investment-grade wine and where to buy them from.
The global wine market is set to reach $434.6 billion by 2027. Investing in wine offers a great way to diversify one’s portfolio and to be better positioned to face the ebb and flow of financial markets. It is a low-risk asset that can give consistent returns over decades if one puts in the time and effort to pick out wines that have the best possibility of appreciating in value over time. It is also fairly insulated from the peaks and troughs of the national and international financial systems.
The time and effort that it takes to build up a wine portfolio is the biggest stumbling block when it comes to getting started with investing in spirits. Wine has specific storage requirements. An individual investor has to build cellars that offer the optimum conditions for storing and aging wine. Finding such a space in one’s house is the first challenge. Even if they manage to carve out a niche in their house to build a cellar, they have to put up a significant amount of money to buy the machinery that will keep the space at the ideal humidity and temperature (55 degrees Fahrenheit with about 60% humidity). A wine that is not stored in the ideal conditions will lose its taste and therefore, its value. These costs are compounded by other additional expenses such as insurance. The high setup costs along with the technical expertise required are the primary reasons that wine investing has stayed exclusively in the domain of wealthy investors.
Vint aims to change the face of fine wine investment by creating an easy system where investors can access the best wines in the world for under $100 a share. It is a long term investment that can yield healthy dividends (it has returned over 9% annually with low volatility over the last few decades) and Vint is making it accessible to all investors everywhere by taking over the responsibility of buying and storing the wine, letting the investors focus solely on the bottom line.
The demand for wines increases as their price increases. This is in contrast to other goods where demand goes down as the price increases. This special quality is why wines are considered Veblen goods. This makes high-end wines luxury items that people are willing to spend money on to bookmark a special occasion in their lives. The most common investment-grade wines consist of Bordeaux, Burgundy, Napa Cabs, and other hotspots from Europe and all over the world.
According to the blog post, those considering purchasing wine as an investment tool should look at 5 specific qualities to determine whether they will increase in value with age. The factors are age-worthiness, region, scarcity, producer, and critics’ rankings. This requires keeping a finger on the pulse of the wine market and constantly educating oneself about the best wine producers in the world. It also involves studying the historical trends in the market while keeping in mind factors that might play a part in the rise and fall of wine prices in the future.
Vint streamlines the research process by presenting its investors with detailed reports from its wine experts that study the wine market and handpick wine collections that are likely to net the best return on investment. Vint works with well-vetted and licensed wineries, merchants, auction houses, wholesalers, and exchanges to determine the wines that are going to see an increased interest in the near future and makes relevant recommendations to its investors.
Readers can find out more about Vint’s portfolio of alternative investments, browse its SEC-qualified collections, or schedule a call with one of its team members by heading over to its website. Their company is skyrocketing their sales and currently accepting new and interested investors.
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