Most people are encouraged to invest because they can profit from it. Sure, it’s high-risk, but the gains are also high. Investing is usually associated with having a portfolio, buying stocks, and owning various businesses. However, this isn’t always the case because there are also investments that many people consider to be unconventional. A perfect example of this is wine.
Drinking and collecting wine is a hobby for many people, but investing in wine is real. The wine investment market is profitable because fine wine is valued for its rarity and quality. Like fine art, wine is rare because it’s made with a limited number of grapes. Other times, wine can only be produced in a particular region or season. The wines are also made with varying amounts of time and even care, which helps increase their value.
If you don’t see the value of investing in fine wine, here are some reasons why you should:
#1 – Investing Made Simpler
Generally, making investments is complicated and can be risky. Lots of red tapes are involved with setting up portfolios and trading stocks. However, when you invest in wine, it’s much more straightforward. You can usually buy wine at a fraction of the price it will be worth in a few years. You can also sell the wine again and get even more money back.
Investing in wine isn’t complicated because you don’t have to worry about building a portfolio or something like that. You also don’t have to worry about how much it will sell for. You can just set up a shelf and enjoy them for years.
It’s also worth noting that wine is a social currency. You can invite your colleagues and friends to have a glass of wine, which can also help you build personal connections with people, an excellent way to network.
#2 – High ROI Is Guaranteed
The investment market is usually quite unpredictable because no one can predict the future. However, when it comes to investing in wine, you can be confident that you will see a return. Unlike the stock market, wine is rarely affected by economic trends like inflation. It’s also affected by the weather because it can affect the quality of the grapes. However, these factors aren’t that impactful.
The value of wine stays high because wine is considered to be one of the most prized possessions. This is because it’s passed down from generation to generation, which helps it retain its value. Thus, you can invest in wine and know you will see a return on your investment. That’s because wine isn’t going out of style anytime soon.
For example, investing in a bottle of vintage wine can be pretty profitable. This is because there are only a limited number of bottles of vintage wine out there. In the UK, many of these bottles go for around £1,000 ($1,300). At the same time, vintage wine bottles can go for thousands of pounds. For example, there’s a bottle of 1921 Chateau Lafite that goes for almost $19,000 (about £15,900). This is an excellent investment because not only will you make a profit, but you’ll also get a nice bottle of vintage wine.
#3 – A Resilient Market
Investments are subject to the same volatility as the stock market, which means they’re subject to market trends. This can be a problem because it can significantly affect your ROI. However, wine is much different because it’s generally considered safe. It doesn’t matter if you’re a private investor or a multi-national consortium because you’ll likely get your money back.
This is because wine is an investment that isn’t affected by the world’s changing economics. This is because wine isn’t only prized for its taste, quality, and aesthetic value. This makes it an excellent investment because it’s unlikely to go out of style. The wine will only get more valuable as time goes on.
#4 – Less Volatile than Other Investments
Investments such as stocks, real estate, and businesses can be volatile. This can be a problem because the market can crash and come back up again. This is bad for investors because they can’t predict when the market will crash. For example, the dot-com bubble crashed in 2000, which caused investment portfolios to lose value. However, wine investments are not affected by these kinds of market trends.
Their quality and rarity mainly influence the value of fine wines. Therefore, it’s unlikely to fall in value unless other factors exist. For example, it’s possible to lose money in the stock market when the company you invest in goes out of business. The same is possible in a housing market crash. However, because wine is rare, it’s unlikely to fall in value.
#5 – Ideal Hedging Method for Investors
Hedging refers to a technique used to mitigate risk or ensure the value of an asset remains high. Regarding investing, hedging is a great way to reduce the risk of investing in the stock market. When it comes to wine, it’s a great way to hedge against the stock market.
For example, if you’re expecting to make a lot of money in the stock market and want to hedge your losses, you can invest in wine. That way, you can safely invest your money and still make a profit. For example, you can invest 100 bottles of fine wine and expect to make a lot of money.
Of course, investing a lot of money in one bottle requires. However, you have a lot of money if you’re an investor. With that money, you can invest it into 100 bottles of fine wine and expect to make a lot of money back.
#6 – Low Taxes
Taxes are a burden, and they make an investment less profitable. However, investing in wine is a smart way to save money on taxes because wine has low capital gains tax in most countries. This is because wine is not subject to income tax, which means you get to save more each year.
If you live in a country like the UK, you can make a lot of money from your wine investment. This is because wine has a tax rebate in the UK. Of course, there are other considerations to this. For example, you have to invest a minimum of £1,000 ($1,300) per bottle of wine to get the discount. However, this can be a great way to save money when investing in wine.
#7 – Long-Term Investment
Wine investments can be a great way to make money in the long term because there aren’t any limits on how long you can invest in wine. For example, if you want to retire early, or if you want to ensure that your children are taken care of in the future, you can invest in wine. This is because wine tends to stay valuable for a long time. This is a good investment because you can easily get your money back and more in the future.
Investing in wine is a smart way to invest your money. Unlike other investments, wine is great because you don’t have to worry about it falling in value, which guarantees high returns. All that matters is being patient and waiting for it to appreciate.
If you’re looking for fine wine investments, Cru Wine can help you! We provide full support to our investors, so we can guarantee that you will get significant returns on a stable platform. Simply go to our website to get started!