Vint posted a blog post that addresses a question most of its investors might have asked at some point: “What factors determine the success of an investment in wine?” “
The blog post begins by highlighting the lucrative nature of investing in wine and how the industry has fared over the past decade. According to the Knight Frank Wealth Index, fine wines have appreciated in value by over 120% over the past ten years. Vint says that investing in wine offers a great chance for an investor to diversify his portfolio so that it is more resistant to changes in the market.
Investors who have been exposed to the global financial market for some time now may remember the tumultuous times following the 2008 financial crisis. The market volatility sparked by this crisis and the generations of wealth it has brought about. swept aside, have forced investors to seek much less risky investment avenues. Vint says investing in wine is a relatively low volatility investment that has given investors a consistent 9% return over the past few years.
There are two ways to approach investing in wine. The first is to buy your own wine and build the infrastructure to store and support it for a long enough period until it becomes viable for sale. This has been the traditional way wine investing has worked and is still a popular form of investing among the upper strata of society. However, this requires a more hands-on approach that requires a lot of free time and an interest in collecting the wine itself. The practical investor should study the best practices for storing and aging wine, which is why it has mainly remained a hobby for the wealthy. The investor must also commit to purchasing a large quantity of wine at first (usually 6 to 12 bottles). The high initial demands on inventory, space, infrastructure and insurance keep this method out of reach of most investors.
Vint is the whole new face of fine wine investing as it eliminates the complicated setup required to maintain your own personal wine portfolio, making the whole process simple and seamless for any investor. The company will take care of all storage and insurance requirements. It even offers experts who carefully craft high-value collections that keep traditional movements in the wine market in mind while incorporating current trends. With Vint, a novice investor does not have to invest the time and effort to keep abreast of events in the wine industry and can focus only on the value of their investment which appreciates over time.
Vint’s blog post then discusses the factors that make a good investment in wine. The first factor is the scarcity of the product. Products that are more difficult to obtain and have limited and exclusive production are better suited to the collection because they are more likely to increase in value. This means that only products grown in specific regions of the world under local conditions and produced in small artisanal quantities are worth investing in. Second, the type of wine also has a big impact on its future value, because not all types of wine are better with age. Red wines are best for the investment because their flavor and aroma improve with age. The other contenders are sparkling wines and white dessert wines which are also great for investing.
The blog post ends with Vint asking investors to follow common sense precautions when purchasing an alternative investment such as a wine portfolio. He states that although wine has remained relatively stable compared to the traditional stock market, current market trends should be investigated before committing to a full investment. Finally, when making the initial purchase, one should consult a classification system that ensures that they are investing in a high quality wine that will retain its quality during storage, age better and generate a profit for the investor.
Vint is the world’s first fully transparent platform for anyone looking to invest in fine wines and spirits. The company says its mission is to democratize the high yielding wine and spirits asset class with SEC qualified collections. They are growing their business quickly and all customers interested in signing up can do so on their website.
For more information on Vint, contact the company here: