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Mutual funds. Bonds. Stocks.
These are the most common types of investments. It's not often that you hear someone suggest to you that you invest in wine.
Should I invest in fine wines? That's a question only you can answer. But here are six reasons why you might want to consider this unique and lucrative asset class.
1. There's a High ROI
As per Forbes, if you had invested $100 in the fine wine market in 1952, your investment would now be worth $420,000.
Experts have analyzed the value of many traditional investments, including those made into the Financial Times Stock Exchange 100, the top 100 companies on the London Stock Exchange. Over a 25 year period, those investments may have increased in value, but they didn't quite reach the exponential value increase that came with investing in fine wine.
2. Supply & Demand
People are always drinking wine. Therefore, supply is consistently decreasing over time. In addition to an ever-decreasing supply, fine wine improves in quality over time. The aging process leads to an increase in demand for wines. With supply decreasing & demand increasing over time, prices generally appreciate.
3. Even If the Market Crashes, Wine Retains Value
Wine has almost no correlation to the stock market. In 2008, the S&P 500 dropped 37%. In that same year, fine wine (Liv-Ex 1000) remained stable. So, when other investments stagnate or lose value, the wine will tend to fluctuate less in valuation. Thus, even in turbulent times, wine shows stability.
4. Investors are Always Keen
On that note, investing in fine wine puts you in a network with people who make buying fine wine a financial priority and an asset class where supply for specific vintages is only decreasing. So, even if other markets struggle, there will always be someone interested in buying a nice bottle of wine — at its proper cost.
5. Wine's a Growing Market
Spain. Italy. California. France. Australia.
There are so many places with well-established wine regions. But along with those locations, new ones pop up constantly. More and more winemakers in places like Georgia, Mexico, and Canada mean more varieties to collect and in which you can invest.
If stagnation and slow growth bore you, then investing in wine can keep things exciting. New markets appear, and growth happens every year!
6. Investing in Wine Can Be Exciting
People who become well-known in wine investing circles get lots of perks. You might get invited to exclusive tastings and trading events. And wine isn't made just anywhere — think of all of the beautiful places that wine investing would allow you to travel.
Time to Pop the Cork and Invest in Wine
Have you been wavering in deciding to invest in wine? If so, then the above six reasons may have pushed you toward saying yes to this incredible opportunity.
If so, then you'll want to join us here at Vint. We keep our collections in perfect conditions, and we don't charge an annual fee from our investors. In return, you get a tried-and-true investment in wine, one that will only get better with time — just like the beverage itself.
