WIVA EDU — Why Does Wine Appreciate in Value?
Throughout history, wine has always been a sought-after commodity. The earliest traces of wine in our history books go back to Georgia to around 6000 BC. Wine has been written about in the bible, consumed by Kings and Queens for centuries, and most recently outperformed every other investment asset over the last 20 years.
So why does wine increase in value?
I am sure this is the question that many of you are asking. I mean, in the end, it is just a drink, right? To many people (including myself), it’s much more of a way of life than it is a drink. There are two principles to wine value appreciation; I will share my secrets below:
1) Ageing
As wine gets older it usually gets better. Many wines are made to drink young with exuberant fruity flavours that hit you in the face. But there are more wines that actually become more pleasant with age and therefore one’s patience tends to payoff. A complex chemical reaction occurs in the wine’s phenolic compounds which creates a rather pleasing flavour over time. So what I am getting at here is, as wine gets older it tastes better meaning the demand for it grows and more people want to buy it.
This leads me to the second principle of wine appreciation.
2) Scarcity
Another reason why wine increases in value is because of its scarcity. I am sure this is a concept most of you crypto people can understand. It is basically the fundamental basis of why someone should invest in Bitcoin. Unlike Bitcoin, wine has additional deflationary forces. Every year more of each wine gets consumed, reducing the total amount of that specific vintage (year) in circulation. If your wine happens to be from a very good year, more people are likely to drink it, perpetuating this deflationary concept into reality. It is safe to say that if you are to hold a wine for even 4–5 years it will definitely be more valuable than the day you purchased it based on this simple concept of deflation + scarcity.
Where WIV comes in.
So now that you are aware of these wine attributes and the high-level reason of why wine is such a good investment, I can explain why what we are creating at WIV is so valuable. Until now, investment wine has only been accessible for the wealthy. They have a cellar, they know the right people, and therefore are invited into this exclusive industry. Until recently, it has been impossible for most people to be involved in wine investing, meaning MOST people are missing out on an extremely lucrative investment opportunity. WIV is trying to fix this problem by making investment wine accessible to everyone through our $WIVA investment club. We understand the value and have come up with a solution.
Conclusion
Congrats! You are one step closer to becoming a wine expert. The next thing to understand is that not all wines are created equal…
We will get to this later.
Understanding the fundamental value of an investment is half the battle. I will be back next week with some more alpha. In the meantime, take it easy and drink some wine!