Imagine an asset that appreciates in value over time while also having a diminishing supply that further drives the value up.
What if this asset also had a low correlation to the stock market and held its value quite well through periods of high inflation.
This actually describes wine as an asset class very well. So, what’s the problem?
Well, historically, wine has been difficult to invest in for the average everyday investor.
For example, wine storage alone can significantly impact returns and wine quality if not done properly.
So, what if someone else handled the sourcing, storage, insurance, and sale of wine on your behalf?
That’s where WineCap comes in.
WineCap is a wine investing platform designed to make this asset more accessible to all investors.
In this complete WineCap review, we review the company and how to get started with a wine investment.
What Is WineCap?
WineCap is a wine investment platform that makes wine investments easier to access and understand.
The company was founded in 2013 by entrepreneur Alexander Westgarth, and is based in London.
The wine market is very complex.
Because of this, some investors may choose to not invest in wine while others may not even be aware about wine as an investment.
With WineCap, investors gain access to a proprietary set of data tools and a team of experts that partner to build a bespoke portfolio with your goals and interests in consideration.
In fact, you don’t even have to have extensive knowledge of wine to get started. Although, it is recommended to have a passion for wine before investing.
With a free introductory 30-minute phone call, a wine investing expert from their team will discuss your investment goals, experience, risk profile, and targeted holding period.
After funding your account, WineCap will build you a portfolio with a diverse set of wines from multiple geographic locations that have strong potential to appreciate over time.
How To Get Started With WineCap
If you want to invest with WineCap, you can sign up for a new account online in just a few minutes. You can also schedule an optional introductory call for free to discuss your account with one of their representatives.
Where Is The Wine Stored?
The wines in your portfolio are 100% yours, which means you can sell at any time.
With that being said, WineCap does keep your wines in their professional storage in London to prevent damage or diminishing quality.
WineCap has a partnership with London City Bond.
Clients can request that their wine be shipped to them in cases and can actually request a tour of the storage facility or pictures of their investment.
WineCap Investment Options
All investment plans offered to clients are completely customized to the needs of each individual.
During the introductory call, an investment representative will seek to understand your goals, risk appetite, time horizon, interests, and more.
With your needs understood, the WineCap team will put together a proposal with a potential portfolio of wines.
The proposal will take into account the amount of money you want to invest.
Of course, the client can reject the proposal if it doesn’t meet their needs.
If the proposal is approved, then the WineCap team will execute the plan.
WineCap Minimum, Fees & Holding Period
Unlike many other wine investing platforms, WineCap does not require a minimum investment.
However, in order to own a diverse wine collection with the greatest potential to appreciate, they recommend investing at least $2,000 to $5,000.
There is no required holding period with a wine investment through WineCap. The wine is truly yours – if you want to sell and realize a profit, you can do so at any time.
It is important to note that wine investments are typically long-term investments best held for 3-10 years.
With WineCap, there is also no management fee or annual fee.
Instead, there is an annual storage fee, which works out to about $15 per year per case.
Additionally, the company does charge a 5% transaction fee when selling.
WineCap’s Wine Track
WineCap tracks the prices of over 75,000 investment grade wines and summarizes the data nicely with their free tool: Wine Track.
They source data on a daily basis to keep their tracker up to date.
The tool unifies more than 100 wine critics’ scores from 12 global publications that use different methodologies and combines them to provide a unique critic score.
Investors can use this tool to monitor wine prices, trends, and critic scores.
WineCap Review: Final Thoughts
Wine as an asset class has been well-hidden throughout the years.
In fact, the majority of wine investors have typically been the ultra wealthy.
WineCap is striving to change that. With no minimum investment or required holding period, truly anyone can get started.
If you are new to wine investing, be sure to check out our complete wine investing guide here to learn more!