Yesterday during the harvest at Chateau Coutet a friend from Hong Kong ask me what I thought about fine wine as an investment.
My answer to him was: ‘’it’s not yet a popular view and that is a good thing’’.
With 30 years in finance I have seen my share of bubbles, and speculative manias that catch everybody’s interests, and when that happen it’s never a good thing. In my experience good investments can only be done when they catch the eye of only a few, we call them the ‘’insiders’’.
I am writing to you today from the airport in Bordeaux, the wine capital of the world, and not one in every 100 people around me know about Alti Wine Exchange.
But it is the World First Exchange for Fine Wine, it is the world’s first open and transparent marketplace for retail clients, institutions and brokers to trade fine and rare wines in a market around the globe. A real ‘stock exchange’ where ‘stocks’ are actually wines! Unique in Nature, based in Blockchain technology available to anyone willing to invest in real assets:
This is why I am a buyer of fine wines as an investment. The key benefits are:
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Asset backed (one token one bottle)
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You can physically enjoy your investment (you can ask for delivery)
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Perpetual demand (wine is a consumer product)
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Based on supply and demand (you can put bids and offers)
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Limited supply (very limited supply listed at Alti Wine Exchange)
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Tax advantages because considered a waste asset (always check with your tax advisor)
Sitting while waiting for my EasyJet plane I am wondering why are all these people travelling? Were they wine lovers? Do they think about wine as an investment?
Fine wine has a strong tendency to grow in value as only a very small quantity of bottles are produced each year, and fine wine is made to be consumed unlike other assets, making rarer with every passing year. This has value and Alti Wine Exchange is the space where they are listed in the only global wine exchange.
I spent my entire career hoping to help others to make money for themselves and we have difficulty now in finding value in financial assets. Over a quarter of all high net worth individuals have a wine collection, according to Barclays Wealth and Investment Management. On the other hand only 1% of the wine produced globally can be considered fine wine.
Wine is not correlated to the stock market, and it’s not a popular view. I love it, things will start getting interesting.
Paulo Pinto