Wine, the Investment That Improves With Age – The Average Joe

    Wine, the Investment That Improves With Age

    Victor Lei — Head of Research

    June 4, 2020

    June 4, 2020


    On another note, we bring you a quick lesson in wine investing.

    • From 2003-2008, investment-grade wine delivered an annualized return of 12.4%, beating the 9.2% return by the S&P 500.
    • Wine has traditionally been inaccessible to the average investor, complicated by networks of private auctions, wine brokers, and a high cost of investing. Launched in 2019, Vinovest is a trading platform that makes wine investing accessible with as little as $1,000.


    What determines the price of wine? Region, production history, and reputation. Parts of the world enjoy better climate and soil for growing the grapes used in wine production. Investment-grade wine is the highest quality wine that makes up 1% of all wine produced. 80% of investment-grade wine comes from France, notably in the regions of Bordeaux and Burgundy. They have a long-standing history of producing high-quality wines with deep knowledge of production techniques.

    PRO TIP: Only investment-grade wine will appreciate in value.

    Why invest in wine?

    • Wine gives investors a good portfolio diversification with a low correlation to the stock market. The overall wine market fell 1.35% while the S&P 500 fell over 25% in the March COVID stock market crash.
    • It offers an opportunity to dive into the world of fine wines with lessons in the history and flavors behind your wine investments.
    • When your friends are talking about their “index stock returns”, you can now bring up the 20-year old bottle of Pinot Noir that scored you a 737% return.


    Vinovest, a wine trading platform available in both the US and Canada, offers individuals a way to invest in fine wine with as little as $1,000 (annual fee of 2.85%). Investors choose a risk profile (conservative, moderate, or aggressive), and a team of experts design an investment portfolio of wines for the investor. Benefits of investing with Vinovest include:

    • Vinovest stores the purchased cases of wine inside their facilities, savings investors the hassle of storage and transportation.
    • All bottles of wine are insured, which covers the full price in the case of a broken bottle or accident to the facility.
    • Bonus: investors can even opt to have their wine sent to them, although it’s never a good idea to drink your whole investment away.

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