Inflation cannot be dismissed. Fine wine is a long-term haven

by Jun 10, 2020News, Wine Trading Academy0 comments


Paulo Pinto

Alti Wine Exchange founding member

Dear reader,

If you remember, I have been writing lately about the need to replace debt by capital with a new Central Bank of Social Security.

Seeing that rents can’t be paid, that mortgages can’t be paid, that New York, Chicago and Los Angeles have been under curfew along with many other cities in the United States due to social unrest, there is no easy way to say it. But this looks just the prelude of something much worse in social and economic terms, even with trillions freshly printed by Central Banks.

I am writing to you after watching a CBS News’ “60 Minutes”. In the program, the chairman of the Federal Reserve, in no ambiguous terms, stated: “There will be consequences to the money printing, but this is not the time to prioritize that concern”.

This in itself is reason enough for the need to re-invent Central Banks – because printing money and going into debt while bailing out a few has proven not to work for most. The other reason, since there seems to be no limit to the amount of money printed, is to believe that this will not have consequences.

Finally, on a personal note, this validates the purpose behind Alti Wine Exchange.

For the last few years, I have been focused on fine and rare wine and invested some of my savings in it, along with other of our founding members.

As some of our readers know, in 2018, a group of people with a long-time finance background, in shock with negative interest rates, decided to create an e-commerce platform to offer fine and rare wine as an alternative asset for investment – or for consumption, depending on the immediate wishes and needs.

The reason is our belief in the likely progression into fiat currency collapse, which will make people transition into real tangible assets. Since then, Alti Wine Exchange is up and running.

Our business model is being increasingly recognized and praised, such as in this recent article by Business Insider that shows just how important it is to build trust and connect producers with investors when it comes to fine wine investment.

* * *

Fine and rare wines are tangible assets and cannot be magically increased at will, unlike fiat currencies.

We started with a Port Wine from 1888, so people understand what it means to have a truly rare wine. And we keep on going with wines considered among the finest in a long-term outlook.

It is normal that people are not familiar with this concept as a wine business for investment. However, these are wines that are collector’s items: they are history in a bottle with intrinsic value and that is why they serve as a good store of value.

banner_visita_virtual barris jmf.jpgbanner_visita_virtual barris jmf.jpg

Fine and rare wines are also so appealing as a store of value, simply because inflation is the most dismissed idea right now. I could go for jars of Nescafe also because when a currency is falling, the desire to hold any tangible asset grows to protect purchasing power. But Nescafe would go out of date by the time I would like to resell it, and I would not be able to do it.

Fine and rare wine is different. I can buy it in bond (no consumer taxes), keep it there, have an offer on the platform for anyone willing to buy, and just wait and relax. It won’t go out of date: it will be rarer as time goes by, and it can’t be replicated unless it’s falsified – and with Alti, it can’t be: because it’s there for anyone to see that has come directly from the producers.

Rare wine is the sort of tangible asset that has offered attractive premiums to potential buyers, particularly those willing to own some of those wines they hold.

* * *

It may take a while for inflation to show up – for instance, the UK government just sold bonds with a negative yield for the first time in history. But if inflation returns, which is very likely, fine wine will do extremely well.

If I am right about this, fine wine will probably be one of the safest places to park wealth. If I am wrong, I can get drunk with it.

Until next time.



More articles on fine wine investment


Explore More from Our Blog

Alti Wine Exchange Indexes: 2022 overview and outlook for 2023

Sergey Glekov Senior financial analyst The Alti Wine Exchange Indexes are a family of equal weighted indexes which trace price performance of fine and rare wines and shows equal weighted average returns on them. The indexes are subdivided by most important wine...

Alti Wine Exchange Indexes: 2021 overview and trends for 2022

Sergey Glekov Senior financial analyst The Alti Wine Exchange Indexes are a family of equal weighted indexes which trace price performance of fine and rare wines and shows equal weighted average returns on them. The indexes are subdivided by most important wine...

They have created the perfect storm for controlled demolition of money

I’m glad to be back talking financial insights, one glass of wine at a time. First they shut down the economy, to save lives. With the closure of the economy, production ceased. To compensate for non-production or reduced production, people were paid not to lose...

Spanish Cava Sparkling Wine: What You Need to Know!

Spanish Cava Sparkling Wine: What You Need to Know!

What is a Port Wine?

DEAR READER, Let’s start February off with a simple question: Good morning, Mr. Ferdinand, What is a Port wine? -Jacques Thank you, Jacques, for your brevity. Let’s get down to business! Ports are an underrated, very particular type of wine made in the Douro Valley,...

What to Expect for Fine Wine Investments in 2022

Let’s face it, between an ongoing COVID pandemic, erratic markets, fires, floods and major humanitarian crises, 2021 was exhausting. And though none of us can be sure what to make of 2022, we can say with confidence that fine and rare wine investments are looking...

Holiday Gift Guide for Fine Wine

It’s that time of year again! And so begins the search for the perfect holiday gift. Something unique, something that shows you truly care. How about a gift that keeps on giving? An investment. Imagine their surprise when you tell them that their gift is resting...


DEAR READER, As I grow immensely in popularity, I’ve noticed more of you interested in my personal life. I didn’t begin e-blogging with this in mind, but I don’t mind indulging every now and then. I imagine my intellect intimidates a lot of you, so maybe shedding some...

The Truth about Fine Wine

Fine wine. What does that really mean? The truth is, as words, they don’t mean much. There is no official classification system for the title “fine wine.” It’s not like the regulated usage of “Premier Cru” or “Grand Cru Classé,” for example, rather anyone can throw it...

Maipo Valley Reds

DEAR READER, I am again-and-again charmed by my readers’ curiosity! It reminds me of being a young sommelier, ready to take on the world one glass at a time. I know far too much to feel that way again—but at least I can experience a shred of it through you all! Dear...

Liquid Harmony

Harmony. Think Crosby, Stills, Nash & Young. Think Picasso's The Old Guitarist. It’s that moment when various elements come together to create magic. And magic really is the word, no? Wine can also sip in harmony, and I can think of no better example than the...

Where Does the Phrase “Aging Like Fine Wine” Originate?

DEAR READER, I received this charming question from an inquisitive reader last week. Dear Sommelier Ferdinand, Where does the phrase “aging like fine wine” originate? It’s so fun! -Imani I just love your question! What a lively spirit you have, Imani! I’m more of a...