Amid The Current Turmoil, Investors Are Looking At Alternative Investments — Have You Looked At Wine?

In the world of investing, real assets are powerful additions to traditional portfolios. This is especially true when a market is in a downturn like the current one. Simply put, portfolio diversification generally lowers the level of risk. From gold to real estate and even art, real assets are often cited as a strong way to create a diverse portfolio and build wealth. 

Commodities, real estate, and precious metals are popular investment alternatives. These alternatives can be more independent from the traditional stock market as they are considered real assets, and they can retain value even when currency is devalued. 

Today, many companies are bringing wine into the investing conversation in a modern and refreshing way. Like real estate and art, wine and spirits are medium to long-term investments. When stacked up against other alternative investments, wine performs quite well. For example, Liv-ex Fine Wine 1000, the broadest index of the fine wine market, was up 16.1% year over year.

Wine is particularly stable because fine wine generally has little to no correlation to traditional assets and thus is relatively immune to the familiar cycles of boom and bust. Stocks and bonds lost 17% for investors in 2022, while fine wine markets saw some of their best gains yet.

Vint Is Making It Possible To Invest

Historically, investing in wine collections was more or less a hobby for extremely wealthy folks. Today, companies like Vint are revolutionizing investment in wine and spirits and making it more accessible by selling shares of collections that have historically appreciated in value.

Their company has a unique model that looks to set them apart from traditional investing in the wine community. The company builds thematic offerings based on research that is sourced from its global network of merchants, auction houses, negociants and producers.

All assets are insured and maintained in professional climate-controlled storage facilities. Vint then launches offerings that vary by size, theme, and asset class. They currently offer wine, spirits, wine futures and whisky casks. Because of their relationships within the industry, the company says it is able to bring offerings to investors often at or below fair market value. Investors can invest in the offering and once there are no shares remaining, the offering is marked as sold out. When assets from an offering are sold, the proceeds are returned to shareholders on a pro-rata basis. 

Vint is eliminating some of the typical friction in wine investing because now investors have a platform where they have easy accessibility to the wine and spirits market. The company reports that an investor with Vint can gain exposure to a traditionally stable and non-correlated asset class at a fraction of what it would cost for an individual.

Learn more about Vint and how you can invest in wine by visiting the Vint website.

Photo by Karsten Würth on Unsplash

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.