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Alternative Investment Asset: Why Invest In Wine? | Vint

June 25, 2021

Wine Glass

With the seeming lack of stability in today's world, it would be easy to imagine people being hesitant to part with their money and consider investing. Yet this couldn't be further from the truth. 

A staggering $569 billion has streamed its way into global equity funds from November last year to April of this year. This is in comparison to the $452 billion over the last 12 years, according to CNBC.

People are then clearly willing to put their money where their mouth is. But instead of going down the obvious route, what about alternative investments and fine wines in particular?

By the end of this article, you will see why there is a good reason for you to consider fine wine for your nest egg.

What Are Alternative Investments? 

There are two standard ways in which the majority of people interested in investing for the future tend to do so.

One is the traditional means of investing. These are the typical types of things that most people think of when it comes to investing, such as stocks, bonds, cash, and real estate.

When most hear that someone has decided to invest their money in any of these areas, they wouldn't bat an eyelid. The consensus is that they seem rather safe bets in seeing some kind of return. However, as we have seen through various recessions over the last few decades, this seemingly secure foundation can be a catastrophic fallacy. 

Alternative investments, on the other hand, among other things, include the extremely interesting world of collectibles. Collectibles are things like art, stamps, musical instruments, and wine. 

Reasons to Invest in Wine

General good practice when one chooses to invest dictates that one should seek to diversify their assets. Putting all your eggs in one basket can lead to disastrous consequences should a specific bubble burst. 

So when it comes to putting your money into different areas, why should wine be at the forefront of any savvy investor's mind? 

Firstly, wine tends to hold its value, especially in a volatile market. For example, the FT reports even when the world seemed to descend into uncertain chaos over the first 3 months of 2020 due to the pandemic (MSCI’s world equity index dropping by 24%), wine saw a healthy double-digit increase. 

This is down to wine not being directly linked to the stock market, so any knock-on effects of an economic crisis do little to affect its value. That should make investing in fine wines a serious consideration for anyone looking for security in these uncertain times. 

In addition, the world of typical investments involves sitting in offices and going over numbers, so getting stuck into the fine wine industry is a breath of fresh air. Fine wines as an alternative investment are a tangible and enjoyable asset that can lead you to discuss your options over a glass or two while attending secret tasting sessions and other events. Who wouldn't prefer that? 

Lastly, it is a low-maintenance investment. Once purchased, especially using services as we offer at Vint, you can sit back and wait to be updated on any changes without having to keep a nervous eye on any news reports or events, either international or local. 

Fine Wine Is the Toast of the Town

As mentioned earlier, there are various options to consider when choosing an alternative investment opportunity. But few are as enjoyable, low-risk, inflation-safe, and fascinating as investing in wine.

A wise option would be to invest in one of the carefully curated collections that we have created here at Vint to get a headstart. We make the process easy so that you can reap the benefits of investing in fine wine relying on the expertise of seasoned professionals.

For more useful information, check out the rest of our blog today!