The Wine Play of the Decade

 

Greetings, Dear Investor!

The boys at the office told me they liked my last post on the blog. Actually, they told me they finally understood why currency is devaluing and, because of that, decided to buy their first wine for investment: the Montes Folly 2011.

“Very good decision”, I said, “because fine wine in the long term will outperform bonds and stocks and that is why I am also investing in fine wine.”

 
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Every day, the stock market shows for each listed company what that company is worth, through a process of price discovery (bid and ask).

Since Fine Wine is a consumer product it will be positively affected by the monetary inflation that Central Banks are pushing now. Why? Because the problem of too much money by debt creation, can only be solved with inflation.

Two years ago we were looking for alternatives to the stock market in real assets and that is how a group of people created Alti Wine Exchange.

Money today is debt, but if there was no debt there wouldn’t be any money. And debt is also time because if there is no limit of time for repayment, then nobody will accept debt.

So accepting negative interest rates, means we accept that we can go back in time. Only thing is that “time” as we all know, comes and it goes and it doesn’t come back.

 
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That is precisely why Fine and rare wines are the perfect alternative asset. A Montes Folly from 2011 is not the same as a Montes Folly from 2016, it is unique in relation to that time. All wine listed at Alti Wine Exchange is a contract between the past and the future because that wine from 2011 cannot be done in the future, it can only reflect the value of the past.

For those who would say that fine wine is not an investment, I will say it is certainly an insurance against fiat currencies losing value over time.

Kind Regards,

Paulo Pinto