>

Wine Benefits

Why invest in wine? Key benefits

Learn why wine investment is a clever idea to diversify your portfolio and keep control of your money.

By

Date

CultX Team - Wine Investment Specialists
07/03/2022

Contents

  1. Wine as an investment
    • Is wine a good investment?
    • Why invest in wine?

Wine as an investment

If you, like many others, are wondering, "Is wine investment a good idea?" you have arrived at the right place. Wine certainly offers a fantastic investment opportunity.

Is wine a good investment?

Fine wine has a long-term track record of stable growth and strong returns. Internal market aspects such as its limited production, vintage variation, critics scores, and reviews only increase its appeal and value. Other aspects like the producer's and region's prestige, and their reliability, also have a direct impact. The integral value of wine, when preserved under the right conditions, underpins why it can make a smart medium to long-term investment. With CultX giving you total control over your investment decisions, fine wine can be a clever investment.

CultX is a revolutionary data-driven platform that gives you access to all the necessary information about your wines, so you can make informed decisions to craft a portfolio you are proud of.

Why invest in wine?

CultX combines our unique market experience with intelligent data to offer a revolutionary platform for managing a fine wine portfolio. Buy, sell, value and store your wine in the best way possible to turn up your investments. Diversify your investment portfolio and grow your income whilst enjoying and learning about the fascinating world of wine. Want to learn more about the benefits of investing in fine wine? Keep reading.

Wine can be a tax-savvy investment

One benefit of investing in fine wine is that, in some jurisdictions, profits on fine wine sales are commonly exempt from Capital Gains Tax. This is because fine wines, from a legal standpoint, are labelled as a ‘wasting asset’ because eventually, wine turns into an undrinkable state. However, wine takes a long time, sometimes even decades, to become perishable. Therefore, developing a fine wine investment portfolio diversification can be immensely useful for reducing tax liabilities. In cases like this, it is recommended that you contact a certified financial advisor to consult your personal finances and make sure that you are fully compliant with tax laws.

Wine can grow in value

Wine improves with time, but the truth is, not all wine does. That is why we rely on our revolutionary data-based technology and market expertise to select vintage wines. Wines high in value, with the right aging potential. We take care of sourcing the wine, so you don't have to. Although the producer and regional prestige contribute to brand equity, we also rely on qualitative aspects to determine the wine age-worthiness. Factors like the wine acidity, tannic structure, and alcohol, along with the complexity of its flavour, will all be considered before reaching the platform.

Wine can outperform other investment options

Did you know? Wine outperformed the Global Equity Index by 1.88%, annually, over the last 15 years.* With a track record of delivering stable growth and strong returns on investment, wine has outperformed financial markets and commodities over the long term. Due to its stability in volatile financial markets, fine wine should be held as an investment for medium-to-long term, i.e. minimum 5 to 10 years.

Wine investment success stories

As a tangible asset with a finite supply, wine can potentially protect wealth during periods of economic uncertainty and rising inflation. Compared with other assets, fine wine has grown exponentially: 231% over the past 10 years compared to 113% for art and 142% for jewellery.

Join our waitlist to become one of the first members of CultX!

*Liv-ex
* Past performance is not indicative of future success; the performance was calculated in GBP and will vary in other currencies. Any investment involves risk of partial or full loss of capital.

Related Articles

wINE INVESTMENT

How to invest in wine En Primeur

See appreciation before the wine is bottled. Discover this technique for investing in wine futures and get our tips for picking the right bottles.

Read more

Best investment wines in 2022

Learn how to buy wine as an investment and how it works. Get all the information you need to find the right investment platform for you.

Read more
wINE INVESTMENT

Tax on wine investment

Invest in wine, tax-free. Learn how wine is exempt from some taxes and the ins and outs of importing wine with our guide.

Read more
wINE INVESTMENT

How does wine investing work?

Learn how to buy wine as an investment and how it works. Get all the information you need to find the right investment platform for you.

Read more
Alternative investments

Wine investment vs. investing in stocks

Is a physical asset such as wine a better investment than adding your money to stocks & shares? In this guide we discuss the pros and cons.

Read more
wINE INVESTMENT

Wine investment guide for beginners

A beginner’s guide on how to start investing in wine, the risks involved and how to find the most suitable wine investment platform for you.

Read more

Join the waitlist for early access

CultX is launching soon. Join the community and be part of a revolutionary new way to trade wine.