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CultX puts your wine portfolio in your hands. Get everything you need to build, track, and manage your fine wine portfolio directly in our app.
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For years, high net worth individuals were the primary investors in wine. They were usually restricted to purchasing large volumes of wine from regions and producers chosen by the financial advisors who managed their portfolios. If they were passionate about wine, they could buy specific bottles when auctions were held, but overall, wine investment was impersonal and inaccessible.
The number one reason why investors have seen wine as a valuable asset class for centuries is its stability during volatile times. Fine wine has consistently outperformed the global equities markets even during downturns.
Whilst the price of wine, as with other asset classes, is driven by demand and supply, the factors that affect the popularity of a bottle of fine wine are very different from those affecting other assets, such as stocks and shares.
Producers make investment wines in limited batches to ensure that demand will always outweigh supply
As a diminishing asset, scarcity increases over time as bottles of each vintage are purchased and consumed.
The superbrand status of the main wine regions guarantees popularity for their leading and rising star chateaux
The quality of fine improves over time. This leads to increasing demand as bottles reach their drinking windows
Portfolio diversification
Holding your wealth across varied asset classes is a time-proven tactic to minimise the overall risk in your portfolio. Fine wine is a powerful diversification asset as the factors affecting demand are very different from those affecting traditional asset classes.
Tax benefits
As wine is considered a wasting asset, fine wine trading can offer potential tax benefits. In the UK, they are generally exempt from Capital Gains Tax. Similar exclusions may apply to investors in Germany, Austria, France, Hong Kong and Singapore among other places.
Inflation defence
As inflation bites, the cost of living rises leading to interest rate increases which can have a negative impact on traditional asset classes. As wine is a physical asset, prices are more likely to increase with inflation. This feature leads to increased demand in volatile times.
Recession resistant
As demand for fine wine generally comes from the more affluent segments of society, it’s less affected by drops in consumer spending. As such, it is an asset class which has proven its stability during recent recessions and downturns in traditional investment markets.
Authenticated ownership
With CultX, every bottle in your portfolio is authenticated and stored in our climate controlled bonded warehouses to ensure their provenance and value over time.
Today, you too can enjoy the gains previously only available to HNWI - and take complete control of your wine investment portfolio. With the CultX app for wine investment, we’ve made it simple to get the expert insights and to-the-minute data you need to make informed decisions.
Get started with no minimum investment required and access hundreds of rare and unique bottles. You can make your choices with confidence - the provenance, ownership, and authenticity of each of our bottles.
Live market data makes it easy to monitor your portfolio’s performance. And you can buy, sell, and trade whenever you choose - CultX connects you to collectors and investors around the world, any time of the day or night.
Join the waitlist today and get your free guide to self-managed wine investing
*https://www.wineinvestment.com/learn/reports/fine-wine-investment-outlook-2022/; Source: Liv-ex
The Liv-ex Fine Wine 1000 index is the broadest measure of the fine wine market. It measures the performance of 1,000 fine wines from regions around the world. And it rose by 7.25% in Q2 2022 alone.
The Live-ex Fine Wine 1000 brings together seven regional sub-indices:
As an alternative investment, fine wine sits apart from traditional markets - instead, internal factors have the greatest influence. In Q2 2022, it was a supply-demand imbalance that drove such high results.
Demand for Burgundy has soared - and with limited stock, so have the prices it commands. Burgundy producers anticipated a low-volume 2021 vintage, so they held some stock back - and already-high global demand reached new heights. Back vintages saw unprecedented increases in price - all of the Liv-ex 1000’s top 10 biggest Q1 price jumps came from Burgundy.
The Bordeaux 500 is also on the rise. With consistent good performance and improving relative value, the 2021 En Primeur campaign will be one to watch.
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If you're new to investing, you've come to the right place. We share our love of fine wine together with comprehensive resources about producers and vintages – all so you can develop and nurture your passion.
Cult’s Fine Wine Academy is a fun and engaging way to help you better understand your options when it comes to investing in wine.
CultX makes it easy to build and manage your portfolio - and find the alpha. We’ve included everything you’ll need to start your wine investment journey right in our app, from expert knowledge to detailed data and analytics.
Ready to start your collection? Check out our guide to how wine investing works. We share all the essential information you need to choose your first bottles, make smart investments - and increase your returns.
Inflation is at its highest in over a decade - yet wine has outperformed it since 2006.
Wine has become one of the most popular ways to hedge against inflation. A physical asset, a bottle of fine wine has its own intrinsic value. And as a collectible, that value has traditionally been determined largely by its own stable internal market - apart from the potentially turbulent fluctuations of the global market.
