Wine has been considered an investment for many years, but more recently with the explosion of Chinese wealth, fine wine has been recognized as a genuine alternative asset class, providing a significant benefit for mainstream financial investor.
However, the growing fame of wine in China is matched with growing amount of counterfeits and copycats.
Why Wine Investment is more Relevant than Ever?
Alti Wine Exchange is filling a gap in the alternative asset class by providing a safe place for wine lovers to invest in fine and rare wines. A place where only producers, the wineries themselves, can sell. Investors are guaranteed an authentic product with safe sourcing and provenance.
Alti only lists the very best wines, which are limited in supply. Fine wines improve with age, and with increased consumption, the scarcity of any given vintage increases too.
Only a transparent market can provide adequate valuations to fine and rare wines through a traditional process of offer and demand.
Liquidity will bring optimum price even if those assets are unique and they have no revenue stream allowing for conventional valuation models.
The Provenance problem: Solved
Provenance is the critical factor in this business. Counterfeit trade has sprung up as prices for fine wines have soared. Australian wine commentator Jeremy Oliver estimates that “up to 50% of wine that retails for more than $35 USD a bottle in China is fake.”
As a result, wines at Alti Exchange come directly from producers and only producers can launch wines at the Exchange by a process of IBO (Initial Bottle Offer), offering the wine to investors. This ensures that no one has tampered or sabotaged the wines.
Through the IBO the wine goes to the market and, is then moved to the bonded warehouse acting as depository to Alti Exchange. The IBO proves the immaculate origin of the wine.
The wines are then stored at Bordeaux City Bond vaults where they provide the optimum environment by carefully regulating temperature, humidity and other microclimatic factors.
As the owner of a bottle bought at Alti Wine Exchange, you (the buyer) have the property through a blockchain contract and a regular account, proving your ownership of the wine as a physical asset.
Wines that are removed from the exchange and therefore leaving the bond depository can no longer return. This is to prevent any kind of possible fraud or scam such as the one seen in this next clip that was taken in China
Alti Wine Exchange can offer you an asset class that can offer protection, and low volatility.
Learn more about Alti Wine Exchange on altiwineexchange.com
Alti Wine Exchange latest Initial Bottle Offering IBO
Learn more about the latest introduction to Alti’s wine investment platform with Champagne Boerl & Kroff 2002 Magnum Initial Bottle Offering priced at 6600 euros
Discover an exclusive Champagne made in very limited quantity, Boërl & Kroff, in the video below:
This Guest Post was written by Paulo Pinto, Founder of Alti Wine Exchange.
Julien Miquel, Founder of Social Vignerons, is involved into the Alti Wine Exchange project as a Consultant and Wine Chief Officer.