Wine investment can be very rewarding and lucrative. It’s less volatile and provides attractive returns.
However, many potential investors are scared of common investing myths in wine.
Only the wealthy can invest in wine.
It might have been true years ago. But, storage facilities used to be one of the biggest barriers to wine investment.
A wine cellar can cost anywhere from $15,000 to $180,000, depending on how you look.
These investing platforms allow anyone with as little as $1000 to invest in wine. It doesn’t matter if you are extremely wealthy or well connected to attend auctions or be invited to taste wines, or build a wine portfolio.
Vinovest makes it easy to invest in wine!
You don’t need to be a wine expert to invest in a bottle of wine.
You don’t need to be an experienced wine collector to invest in fine wine.
Reputable wine investment platforms can provide all the information that you require about your investment-grade wines. The wine’s grape variety, aroma, flavor, alcohol content, and other factors such as the cork closure on the wine will all be revealed to you.
You can also invest in wine investment platforms to build your portfolio, especially with highly sought-after wines, such as those that have received high marks from critics like Robert Parker.
Bordeaux Wines are the best investment.
There’s no denying that Bordeaux wine bottles hold a significant share of the fine wine market. Bordeaux wine sales in the US hit an all-time high in 30 years – the sales increased by 67% in 2021.
Bordeaux is not the only wine region producing investment-grade wine bottles. You can also find stunning returns on white and red wine bottles made from the Rhone Valley and Napa Valley.
Some regions in the New World, such as New Zealand, produce high-quality wines worthy of investment.
Wine Investment is Highly Volatile
Wine investment isn’t highly volatile. Fine wine shows lower volatility in returns compared to other assets.
During the market volatility of the 2020 Covid pandemic, the Dow Jones and S&P 500 stock exchanges dropped by 25%. The Liv-ex 1000 index, which tracks 1000 wines on the global fine-wine market, fell by only 4%.
Wine investment is a stable option because it does not correlate with the stock exchange.
Fine wine is always better than other investment options.
Wine investment offers consistent returns and usually performs better than other investment options!
Livex 100 index, which tracks 100 wines in high demand, rose 23% between 2021 and 2021. This outperforms gold and other mainstream equities. The FTSE 100 index (Financial Times Stock Exchange) rose by 14.3% between 2021 and 2021.
The benchmark index for fine wines (23.0%) was also much higher than stock markets like the Dow Jones Industrial (18.7%) and Nasdaq (21.4%).
The Knight Frank Luxury Investment Index revealed that fine wine investments offered the highest returns for 2021. These were the overall investment returns:
- Wine: 16%
- Watches: 16%
- Art: 13%
- Coins: 9%
- Rare Whisky: 9%
- Handbags: 7%
- Cars: 3%
- Jewelry: 2%
- Colored diamonds: 2%
- Furniture: 1%
The report also shows that over the past 10 years, wine investments (New and Old World) have generated returns exceeding 119%.
Fine wine is an excellent investment option that can often withstand economic crises. For example, stocks dropped 52% during 2008’s Great Recession, while Liv-ex Fine Wine 100 returned 25.51% on investments!