Vint, the world’s first fully transparent platform for anyone looking to invest in fine wines and spirits, posted a blog post that addresses one of the most common questions asked by recent investors. to enter the exciting world of investing in wine – How to add value to wine? Vint’s blog post explains what makes great quality wine and where to buy them.
The global wine market is expected to reach $ 434.6 billion by 2027. Investing in wine offers a great way to diversify your portfolio and be better positioned to deal with the ebb and flow of financial markets. It is a low risk asset that can deliver consistent returns over decades if the time and effort is spent choosing wines that have the best potential to gain in value over time. It is also quite isolated from the ups and downs of national and international financial systems.
The time and effort required to build a wine portfolio is the biggest stumbling block when it comes to getting into spirits investing. Wine has specific storage requirements. An individual investor must build cellars offering the optimum conditions for the conservation and aging of the wine. Finding such a space in his 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 in a significant amount of money to buy the machines 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 ideal conditions will lose its taste and therefore its value. These costs are compounded by other additional expenses such as insurance. The high installation costs as well as the required technical expertise are the main reasons why investment in wine has remained exclusively in the domain of wealthy investors.
Vint aims to change the face of investing in wine by creating a simple system where investors can access the world’s best wines for less than $ 100 a share. It is a long term investment that can pay healthy dividends (it has returned over 9% per annum with low volatility over the last few decades) and Vint makes it accessible to all investors around the world by taking charge buying and storing wine, leaving investors to focus solely on the bottom line.
The demand for wines increases as their price increases. This contrasts with other goods for which the demand decreases as the price increases. This special quality is the reason why the wines are considered as Veblen products. This makes premium wines luxury items that people are willing to spend money on to mark a special occasion in their life. The most common quality wines are Bordeaux, Burgundy, Napa Cabs and other hot spots in Europe and around the world.
According to the blog post, those considering buying wine as an investment tool should look at 5 specific qualities to determine if their value will increase with age. The factors are age, region, scarcity, ranking of producers and reviews. It requires taking the pulse of the wine market and constantly learning about the best wine producers in the world. It is also about studying historical trends in the market while keeping in mind the factors that could play a role 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 who study the wine market and handpick which wine collections are likely to generate the best return on investment. Vint works with well-vetted and licensed wineries, merchants, auction houses, wholesalers and exchanges to determine which wines will generate increased interest in the near future and make relevant recommendations to its investors.
Readers can learn more about Vint’s alternative investment portfolio, browse its SEC-qualified collections, or schedule a call with one of its team members by visiting its website. Their business is skyrocketing in sales and is now accepting new interested investors.
For more information on Vint, contact the company here: