How to build wealth with a strategy based on fine wine

by Oct 29, 2020News, Wine Trading Academy0 comments

Photo: Martyna Jovaišaitė Paukštė, for Alti Wine Exchange

Photo: Martyna Jovaišaitė Paukštė, for Alti Wine Exchange

Dear reader,

It seems hard to think of building wealth in times of upsurge in covid-19. But yes, you can do it with fine wine investment. And you can start today.

All it takes is a simple change of strategy for the long term: commit yourself to a small share of alternative investments. In the case I will show you, relying mostly on fine and rare wines.

Yes, you really can build wealth if you invest in fine wine.

I’m Breno, proud fine wine investor and head of content at Alti Wine Exchange. And here is why and how you should go ahead a modified wealth-building approach by investing in wine. Thus, diversifying your portfolio with a profitable and ever more attractive asset for new prospective investors.

 

What makes fine wine a good alternative investment asset

In times of economic uncertainty, many investors go for physical and tangible assets: some buy real estate, gold, or art. These are famously referred scarce resources when we talk investment – real, hard assets.

Fine, rare wines like the ones offered by Alti Wine Exchange and traded on its marketplace are among them. They have unique advantages:

  • Without even having to get off the couch, you can digitally invest in them to be kept with full safety and perfect storing conditions in bond.

  • Unlike cryptocurrencies, for example, fine wines you purchase at Alti Wine Exchange are asset-backed (one token, one bottle).

  • You can physically enjoy your investment (you can ask for delivery at any time you want).

  • Wine has perpetual demand (as a consumer product), and every fine wine sold at Alti Wine Exchange improves with age.

  • Fine wine investment is based on supply and demand: as time goes by, bottles of a determined vintage are consumed, thus supply becomes rarer and makes the remaining ones appreciate due to stable or rising demand.

  • Even if wine price indexes may experience ups and downs, fine wines are hard assets that are not correlated to the stock market, thus subject to constant appreciation once you already hold them.

  • You can put bids and offers whenever you want in a secondary marketplace, maintaining full control.

  • You also have tax advantages, because considered a waste asset (but always check with your tax advisor in case you redeem a bottle!)

Don’t believe how this translates into appreciation? Compare the performance of our fine wine indexes versus key European stock indexes.

AWEeuroindex.png

 

A new strategy to build wealth with the help of fine wines

As we go through this era of risks, it’s time to consider the strategic opportunity that a tangible asset such as fine and rare wine represents.

Here’s how you can adopt a simple strategy:

  • Commit around 3 to 5% of your portfolio to alternative assets as fine and rare wine.

  • Research the wines you would want to hold, ensuring they will withstand the test of time or improve as the years go by (the wines offered at Alti Wine Exchange are all previously proven to be age-worthy).

  • Find a reliable source, with certified provenance, to build your “wine collection” portfolio to avoid cold calls and scams.

  • Unless you plan on redeeming your bottles, keep them in bond for years to ensure the best storing conditions. Consequently, ensuring the maximum possible appreciation they can have as tangible assets.

  • When you are all set and good to go, you can start to invest even monthly, as you would do with the spare of your salary.

  • Buy diversified wines (country, vintage, style…).

Here are a few top tips on what you really need to know to start investing in fine wine.

 

Why investing in fine wine is easier and safer with Alti Wine Exchange?

With our innovative blockchain-based platform, you can do it all I showed you above with little concerns, full transparency and safety.

We are the world’s first blockchain-based platform for wine exchange. We work every day to make wine trading simple and convenient for everyone by offering direct access to rare wines and — at the same time taking care of storage and security of their assets in the Bordeaux City Bond.

We are happy to say that we have a whole team of superstar investment-grade wines available for investment now.

In times when stocks may heavily drop or float, what we offer is an opportunity to add fine, rare vintages to your portfolio as great alternative assets. You don’t even have to be an expert.

Most importantly? We are free to join and easy to start trading. Got doubts? Check our FAQ.

 

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...

FAMILY-RUN WINERIES

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...