During the shelter, sales of alcohol increased as millions of Americans entertained at home. The increase in alcohol sales has made me aware about whether there is a chance to invest in wine. After all, people drink when times are healthy. And people could drink even more when times are tough!
There is a way to invest in fine wine through the Vinovest website. As someone who is a wine fan and lives a few hours away from Napa Valley and Sonoma, through this sponsored post I am happy to learn more about their platform.
Vinovest Review: Fine Wine Investment Platform
Long-term investing in the stock market is a well-proven and genuine way to invest in the future. The stock market is nonetheless dynamic, as we have all seen in 2020 so far. As a result, some investors have turned their portfolios towards alternative investments.
Fine wine investment has recently gained visibility as it is now an asset class for regular investors. Wine prices rose +1.10 percent during the first quarter of 2020, while S&P 500 tanked.
Thanks to the wine ageing process when it comes to wine investment, there is a good tailwind.
Inventory wines should mature between 35 and 50 years and generally increase their value over this time. However the price often obviously depends on the demand of the buyer.
“Wine has outperformed S&P in the past 30 years, also during downturns,” says Vinovest.
Below is a chart from Vinovest showing how good wine was performed in the 2008 recession against other asset groups.
Table of Vinovest Features:
| Minimum Investment | $1,000 |
| Trading Fees | None |
| Annual Fee | 2.5% to 2.85% |
| Account Type | Taxable |
| Portfolio Rebalancing | Unlimited |
| Average Liquidity | 4 to 6 weeks |
| Advisor Access | Investors with account balances above $50,000 |
How do you work with Vinovest?
If you want to start with Vinovest, here are the following steps:
- Set aside at least $1,000 for their regular offering, or at least $50,000 for their custom investments.
- Register online in minutes and share your investment risk and priorities.
- Pick your wine bottles on the website, or have sommeliers choose and shoppe for you.
- Store your Vinovest wine or order that it be shipped to you for your enjoyment.
- Track your portfolio and make online requests.
- You should sell your assets year after year in order to earn the highest possible return.
Vinovest says its team and algorithm aggressively seeks wines from existing vineyards, including Bordeaux, Burgundy, Napa, as well as emerging regions and new wineries all over the world.
Here are a few powerful players in the last year:
Armand Rousseau Grand Cru Chambertin 2013 rose 114% last year
Sassicaia 2015 increased by 55 percent in 2015
Vinovest Pros
Here are some significant reasons for investing in Vinovest wine.
a) Asset unrelated to moves of other markets
The stock market has a low correlation with the success of fine investments in wine that means that stock movements appear not to impact Vinovest’s returns. This is ideal for those who want to diversify their portfolio with less uncertainty.
b) Diversification in your portfolio is better risk management.
Alternative investments such as fine wine add to each investment portfolio. Vinovest offers an opportunity to diversify the portfolio into something usually less volatile than the stock market with a history of strong returns.
Climate change and synthetic wine production could push scarcity of fine wines
c) AI Driven Knowledge Expert Base
Vinovest lets you take data-based decisions on the best wines to add to your portfolio, by integrating some of the world’s best wine experts with AI technology while taking account of your risk tolerance, investment periods and investment amounts. If you want to be, you can be absolutely hand-off without even touching a bottle of wine.
d) Security and storage
Vinovest offers world-class facilities that you need over time to store your wine. It is regulated and tracked 24 hours a day.
e) Insurance and guarantee
In order to guarantee the source of your wine, Vinovest inspects every bottle for authenticity. Vinovest also guarantees that any bottle of wine has maximum market value for the protection of your portfolio against adverse incidents or other unforeseeable circumstances.
f) Welcome non-accredited investors
An accredited investor is a person or company authorised to deal with securities that are not registered with financial authorities.”
An person or couple must fulfil one of the following criteria for an accredited investor:
$200,000 of individual revenue, or $300,000 of combined revenue in the last two years and hope to receive the same amount or more during the current year.
Joint or individual nett worth over 1 million dollars
Person is the general partner, managing director or combination of these for the unregistered securities issuing company.
The average citizen finds these provisions very difficult to meet, and Vinovest invites non-accredited investors on their platform. This breaks down the entry barrier to deliver stock alternatives to a wider population. Individuals will diversify their investments with just under $1,000.
Vinovest’s Advantages
Here are some inconveniences to investment in Vinovest wine. This can stop you from searching for an alternative stock market elsewhere, depending on your time span, risk tolerance, and asset allocation.
a) Tariffs
Vinovest charges a 2.85% annual portfolio value premium which is reduced to 2.5% for portfolios above $50,000. An investment of $5,000 in fine wine will lead to a Vinovest $142.50 annual charge.
Comparing it with an index fund for the stock market is even higher. The fee is online relative to other alternative investments. The fee included the establishment of adequate wine storage with sufficient temperature control and humidity. Furthermore the premium also includes the costs of transport logistics worldwide.
b) Liquidentiality
Wine is not as easy to liquidate as it is a physical product. You can have to wait to find a buyer or eat the wine yourself.
In order to capitalise on the value of your wine investment, however, Vinovest will manage the business for you in 4-6 weeks because of its ties to networks of other experienced investors, funds, importers, distributors and distributors. This gives you access to global wine market.
c) Patience
You may have learned that wine improves with age. This is why investing in fine wine is intended for investors who would like to invest preferably for at least three years. This makes enough love of the bottles because global demand is scarcer.
Vinovest recommends wines that age for 30 to 50 years before they reach their peak drinking window. This means that the wine will likely increase in value over time and you won’t see your return until part or all of your portfolio is sold.
While the sommeliers at Vinovest will recommend the best times to buy and sell wine, you’ll ultimately have the final decision.
d) New platform
Wine investing for all has not been available to the mass market for very long. Vinovest started in 2019.
For whom is wine investment?
$100,000 for this 1787 Château d’Yquem bottle
Vinovest provides all investors its fine wine prospects, making it perfect for someone who wants to diversify its portfolio and offset stock market uncertainty.
Although wine experts may already have a passion that urges them to invest, an investor does not need a knowledge of wine to start. Vinovest can either support you.
If you are looking for a nice bottle of wine with friends and family, try a nearby shoppe. But Vinovest may be the right option to diversify your investments if you are looking for a long-term alternate investment which is unconnected with the stock market.
You won’t get minutely, regular or monthly updates, but it’s great to know that fine wine has been averaging 11.6% returns for investors since the mid-1980s.
While you shouldn’t place all your wealth in fine wine, it may be worth it for those who want to incorporate alternative investments. A number of brands, styles, tastes and scents can be selected to match your choices in terms of time, risk tolerance and allocation of properties.
If you like Vinovest, you can start here You can start here.