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Top 6 platforms for investing in good wine

The 2008 recession and the COVID-19 pandemic shed light on a safe haven for investments – Fine Wine Investing.

Investments are a strategy. Although it is easy to follow conventional methods, trying times require unconventional planning.

However, once you check it out, you won’t call Fine-Wine Investing anything unconventional or radical:

Source: London International Wine Exchange

Good wine is therefore presented as an excellent alternative to global actions. Even some real estate investments look bleak.

Here are a few more reasons why good wine is an excellent investment opportunity:

Great phrases

Depending on the brand and shortage, it can make an exceptional return. For example, DRC La Tache (2009) had over 800% returns in a decade, according to yahoo Finance.

Over the past 15 years, fine wine has posted an annualized return of 13.6% compared to the Dow Jones and S&P 500, reaching 7.8% and 8.58%, respectively.

Physical resource

Wine is a real physical value. This is not something that is mentioned in the spreadsheet. You represent the beneficial owner, unlike shares which are paper assets.

Moreover, it always remains a limited material resource, the value of which increases with each used bottle. Moreover, depending on the source, each series is unique to the others, which further increases the price.

Resistance to inflation/recession

Investment quality wines have excellent resistance to inflation.

Plus, the period you keep it while it’s consumed everywhere makes it even more resilient.

Likewise, factors such as pandemics or geopolitics that can wipe out capital gains have little effect on wines.

Moreover, it is a simple game of supply and demand in which the latter often lags behind.

Now it’s about…

How to invest in wine?

There are several ways to invest in wine.

do it yourself

The most reliable and risk-free way is to buy, store and sell at the right time. But you have to be an expert to go this route.

So the unforeseen problems that come from this can far outweigh the benefits for most people. Bottom line: be extra careful.

Wine stocks

Another way is to invest in successful wine companies. But it will not be a direct investment in wine.

Moreover, the downsides will be similar to buying stocks.

Investment platforms in wine

There are also platforms that do everything for you for a small fee.

These are generally specialists who buy, store, do periodical reports and finally sell, giving you a return.

These are the platforms we’ll cover in later sections, starting with the first one:

Wint

Founded in 2019, Vint is an SEC-qualified wine investment platform for US citizens.

So you are essentially investing in Vint LLC, the company that owns every bottle in the collection.

Depending on your accreditation, you can have 10-20% in one offer. It’s worth noting that you can’t sell shares under your will. The website clearly states that it is a long-term investment (3-7+ years).

Vint, however, plans to create a secondary market for its stake in investment wines. So you will be able to trade Vinto shares if it is visible in the picture.

Overall, Vint has no annual fees, but charges an undisclosed origination fee for each collection.

Cult investment in wine

Cult wine investment stores your wines in a London City Bond warehouse. While you can get started with Vinta with as little as $100, you need at least $10,000 to apply for Cult Wine Investment.

Cult Wine Investment, which started in 2007, has a global reach in 83 countries. There are no transaction fees and you can sell at any time through their trading team on the global wine markets. Interestingly, you can search for images of your wine bottles.

You pay a monthly fee of 2.25% of your investment based on the size of your portfolio. This increases to 2.95% on a base subscription of $10,000.

The period of liquidation of assets is at least 6-8 weeks.

But Cult Wine Investment is not just about investing in wine. You’ll enjoy access to wine tastings, iconic wine events, curated vineyard experiences and more based on your investment package.

ALTI wine exchange

ALTI Wine Exchange is a blockchain-based wine trading platform. Their headquarters are in Hong Kong, and their wine warehouse is in Bordeaux City Bond, France.

Each bottle is assigned a token that represents ownership, similar to a non-removable token. They have an aftermarket where you can sell your wine whenever you see fit.

In addition, you can even start with one bottle of wine, so there are no hardcore minimum investment limits. You can also have an ALTI exchange office deliver wine to your physical address.

It is worth noting that the ALTI stock exchange does not support margin trading and short selling.

Finally, their LinkedIn post reveals the following: they charge a 2% fee for each transaction.

WINDOME

VINDOME is another blockchain-based wine trading platform tailored for your smartphone.

You can buy from the VINDOME collection at a fixed price or choose delivery if you prefer.

An alternative option is to buy on a live market that connects collectors and investors from all over the world. You can buy at a set price or bid your price and wait for a response from the seller.

VINDOME is headquartered in Monaco, Europe. Wine storage in the warehouses of JF Hillebrand, an international logistics company.

Ultimately, each transaction incurs additional fees such as insurance, storage and commission (4%) which are shown along with the final payment.

Wine financing

Based in France, Wine Financing is very different from the others we just talked about. Simply put, you’re not just investing in wine, but in wine projects and the people behind them.

So you’re practically taking the risk when WineFunding checks out small and medium-sized wine companies. You buy their debt bonds without becoming a shareholder or having any influence on the company’s operations.

There are three wine investment models to get you started:

  • Payback – Get full pay for your stay in the wine and/or vineyard.
  • Bond – get principal in euros and interest on wine.
  • Equity – become a shareholder.

WineFunding is free for investors. However, the success of your investment is determined by the project you agree with. This makes it one of the most uncertain adventures in wine investing.

Vinovest

Vinovest is a California-based AI-based wine investment platform that offers different tiers with specific fees and benefits.

Your wines are stored in warehouses around the world in France, USA, Great Britain, Denmark, etc. There is also the possibility of a tour of the facilities.

The basic plan starts at $1,000 and has an annual fee of 2.85%. This fee covers insurance, storage and everything else in the wine investment account. Needless to say, this management fee decreases as the investment increases and is set at a minimum of 2.25% for an account balance of $250K. USD.

In addition, there are two types of accounts: merchant and managed. While trading gives you full control over which wine to buy and sell, managed accounts are managed by Vinovest. It is worth noting that trading accounts have separate fees for buying, selling and holding.

A typical holding period is 5-10 years depending on your portfolio. However, Vinovest can help you sell within 2-3 weeks. But there is a 3% early liquidation penalty if you withdraw before the three years are up.

They also accept cryptocurrency payments like BTC, ETH, USDC etc. There are also mobile apps for Android and iOS to keep track of your wallet on the go.

Investing in wine: conclusions

Regardless of how it sounds to you, the real purpose of this article is to inform you about wine investment platforms, not to give any investment advice.

And like any investment, investing in wine does not guarantee a good return. Depending on the platform and other conditions, you can make good money or lose everything.

In conclusion, read the fine print and assess your risk appetite before jumping in.

Now you can check out some of the best ETFs and stock investing apps.

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