Not so long ago, investing in wine was only for the ultra-wealthy, but that’s no longer the case. Wine lovers and investors alike are investing in this asset class to diversify their portfolios.
One of the primary benefits of investing in wine — outside of its global appeal — is its low correlation to the stock market. But there’s a big difference between investing in wine and successfully investing in wine.
With platforms like Vint, everyday people can successfully invest in wine. Vint curates collections of investment-grade wine and spirits, securitizes them with the Securities and Exchange Commission and offers fractional ownership to investors.
Use the Vint platform to invest in wine for as little as $40.
Is Wine A Good Alternative Investment?
According to the Knight Frank Luxury Investment Index, wine remains one of the best alternative investments.
Over the past decade, fine wine prices have increased by 149%. That’s the second-highest return of any alternative investment. What’s No. 1? Whiskey.
In other words, investing in alcohol has been good for investors.
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“Burgundy has been the big success story of the past decade, with prices having escalated 367% by the early autumn of 2022,” said Nick Martin of Wine Owners, the company that provides data for the Knight Frank Fine Wine Icons Index (KFFWII). “However, the top of the Burgundy market peaked around that time and has since fallen by at least 9%. Published prices tend to lag realized sales, indicating that there is further to fall.”
This is proof that wine, just like any other type of investment, ebbs and flows. It’s not a short-term play today and won’t be in the future. The most successful investors are those who consider it a medium- to long-term investment, generally with a minimum hold period of five years.
Knowing when to sell is another reason to work with a platform like Vint. It closely follows the market, only selling when the time is right to maximize returns. When that time comes, the company works with private buyers, merchant partners and auction houses to secure top prices. From there, proceeds are distributed to investors accordingly.
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This article Wine As An Alternative Investment Is No Longer Exclusive To The Ultra-Wealthy originally appeared on Benzinga.com
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