Fine wine as an asset

When comparing investments, people often compare the stock market to other investments. Often people report a possible 10% to be gained from the NASDEQ. As an active day-trader and investor, I know that these amounts and much more can be made. The reverse is also true. Much money can be lost, and with the Coronavirus now wreaking havoc in profit forecasts and spreadsheets globally, we see the effect. In days billions have been taken off the value of companies in the luxury and tourism industry. Many blue-chip stocks such as banks, the mail and insurance companies have been dealt major blows to their share price.

Many people are now looking to the worlds of art, wine and luxury goods as stores of wealth. Fine wine is a product of quality and scarcity that increases over time. Here we see the difference between an asset and an active investment and find that fine wine performs as both.

A New assets class

For the savvy investor, they may want to put money to work in wines, gold, shares, art or other investments. While this makes sense it can cause a problem when someone is cash poor but asset rich. When an opportunity strikes, such as a low price at auction, it is good to know that the wealth in your cellar can be counted on. Instead of having to sell Suttons and Robertson can provide you with a range of loans with fine wine as the asset.

By having access to this new asset you gain twice, firstly, the wine is increasing in value every year, and secondly, it can be used as the basis for a loan.

Active investment

While the bold can still make money in such a volatile stock market. It is always good to be aware of other options. Wine is often seen as a safe haven product and remains largely unconnected to the global stock market.

People always want these brands, and while a fine wine is a luxury product. A very high-end Penfold Grange 2015 (bin 95), is still less than £3,000. This is an affordable luxury and has been going up in value for the last ten years.

First steps

If you love wine, then investing
yourself can be a great adventure. If you like the idea of researching the
wineries of the world, the prices, the best way to store them and already know
a Grange from shiraz, then doing it yourself is recommended. You can turn your
cellar into a source of funds for the future and will be greeted with open arms
when you approach the wineries with checkbook in hand.

If, on the other hand, you want a hedge against your other investments,  you want something that is shielded from the NASDEQ. Then it would help if you had a guide to find you the best things to put your money into, then you are better going with a wine investment firm, like Vinovest, who can buy and store for you.

If you’re looking for a london pawnbroker who can help turn whats in you cellar into a loan, then get in touch.