Top 6 Fine Wine Investing Platforms

The 2008 recession and the COVID-19 pandemic have shed light on a safe haven for investment: Fine Wine Investing.

Investing is all about strategy. While it’s easy to follow conventional methods, difficult times call for unorthodox planning.

However, you will not call Fine-Wine Investing unusual or radical after checking this:

Source: London International Vintners Exchange

Good wine thus presents itself as an excellent alternative to global equities. Even some real estate investments look pale against it.

Here are a few more reasons to choose good wine as a perfect investment opportunity:

Great return

Depending on the brand and scarcity, it can yield exceptional returns. For example, DRC La Tache (2009) had more than 800% returns in a decade, according to Yahoo Finance

Over the past 15 years, good wine has 13.6% annualized return compared to Dow Jones and S&P 500, which performed 7.8% and 8.58% respectively.

Physical Assets

Wine is a real, physical asset. It’s not something listed on a spreadsheet. You represent actual ownership as opposed to a stock which is a paper ownership.

In addition, it always remains a limited supply of tangible assets that increase in value with each bottle consumed. In addition, depending on the source, each batch is unique to others, further increasing the cost.

Inflation/Recession Resistance

Investment-grade wines have excellent inflation resistance.

Besides, the period of holding it while it is consumed everywhere makes it even more resilient.

Likewise, factors such as a pandemic or geopolitics that can wipe out equity gains have little effect on wines.

In addition, it is a simple game of supply and demand, with the latter often lagging behind.

Now it comes down to…

How to invest in wine?

There are a few ways to invest in wine.

Do it yourself

The most reliable and risk-free way is to buy, store and sell at the right time. But you have to be an expert to go this way.

So the unforeseen problems of doing this may outweigh the benefits for most people. The bottom line: be extra careful.

Wine stocks

Another way is to invest in wine companies that are doing well. But this will not directly be an investment in wines.

In addition, the negatives will be similar to buying stocks.

Wine Investment Platforms

Then there are platforms that will arrange everything for you for a small fee.

They are generally experts who buy, stock, do periodic reports and eventually sell, getting returns.

These are the platforms we’ll discuss in the following sections, starting with the first:

Vint

Founded in 2019, Vint is an SEC-qualified wine investment platform for US citizens.

So you are essentially investing in Vint LLC, which owns every bottle in the collection.

Depending on your accreditation, you may have 10-20% in one offer. In particular, you cannot sell the shares by will. The website clearly says it is a long term investment (3-7+ years).

However, Vint plans to create a secondary market for its investment shares in wine. So you can trade Vint stocks when that comes into play.

In conclusion, Vint has no annual fees, but takes an undisclosed redemption fee in each collection.

Cult Wine Investment

Cult Wine Investment stores your wines in the London City Bond warehouse. While you can start with $100 with Vint, you need a minimum of 10k USD to register with Cult Wine Investment.

Started in 2007, Cult Wine Investment has a global presence in 83 countries. There are no trading fees and you can sell to worldwide wine markets at any time through their trading team. Interestingly, you can request photos of your wine bottles.

You pay a monthly fee from 2.25% of your investment based on your portfolio size. This goes up to 2.95% for the basic $10K plan.

There is a minimum period of 6-8 weeks for liquidating assets.

But Cult Wine Investment is not just about investing in wines. You get access to wine tastings, cult wine events, curated vineyard experiences and much more based on your investment package.

ALTI Wine Fair

ALTI Wine Fair is a blockchain-based wine trading platform. Their headquarters are in Hong Kong while the wine storage is located in Bordeaux City Bond, France.

Each bottle is assigned a token that represents ownership, similar to a non-fungible token. They have a secondary market to sell your wine whenever you want.

Plus, you can already start with a single bottle of wine, so there are no hardcore minimum investment limits. You can also exchange ALTI directly to deliver your wine to your physical address.

Notably, the ALTI exchange does not support margin trading and short selling.

Finally, their LinkedIn post reveals that they charge a 2% trading fee on every transaction.

VINDOME

VINDOME is another blockchain-based wine trading platform tailored to your smartphone.

You can buy from VIDOME collections at the fixed price or opt for delivery if you prefer.

An alternative option is to buy on the live market that connects global collectors and investors. You can buy at the listed price or bid your own price and wait for the seller to respond.

VIDOME is headquartered in Monaco, Europe. They store wine in the warehouses of JF Hillebrand, a multinational logistics company.

In the end, there are some additional costs associated with each transaction, such as insurance, storage and commission (4%) which are shown on the final payment.

WineFinancing

Based in France, WineFinancing is very different from the others we’ve talked about so far. Simply put, you don’t just invest in Wines, but in wine projects and the people behind them.

So you are practically risking it with WineFunding vetted small and medium wine companies. You buy their wine bonds without becoming a shareholder or having a say in the business.

There are three investment models for wine start:

Refund – Get paid in full in wine and/or wine estate stays. Bond – Receive principal in euros and interest in wine. Equity – Become a shareholder.

WineFunding is free for investors. However, the success of your investment is determined by the project you join. This makes it one of the most precarious wine investing adventures of this lot.

Vinovest

Vinovest is a California-based AI-powered multi-tiered wine investment platform with specific fees and benefits.

Your wines are stored in worldwide storage locations in France, USA, UK, Denmark, etc. There is also an option to tour the facilities.

The basic plan starts from USD 1000 and has an annual fee of 2.85%. This fee covers insurance, storage and everything else for your wine investment account. Obviously, this management fee decreases as you grow your investment and is set at a minimum of 2.25% for an account balance of USD250k.

Furthermore, there are two types of accounts: trading and managed. While trading gives you complete control over which wine to buy and sell, managed accounts are maintained by Vinovest. Trading accounts in particular have separate costs for buying, selling and storing.

The typical retention period is 5-10 years based on your portfolio. However, Vinovest can help you sell within 2-3 weeks. But there is a 3% early liquidation penalty if you withdraw before three years.

They also accept payments in cryptocurrencies like BTC, ETH, USDC, etc. And there are mobile apps for Android and iOS to track your wallet on the go.

Investing in wine: conclusion

As much as it sounded to you, the real purpose of this article is to educate you about wine investment platforms and not give investment-related advice.

And as with any investment, an investment in wine is not a guaranteed good return. Depending on the platform and other conditions, you can make good money or lose everything.

Basically, go through the fine print and gauge your risk appetite before jumping in.

You can now look at some of the best apps for investing in ETFs and stocks.

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