Dissecting a Whiskey Investment Platform: Vinovest Review

Dissecting a Whiskey Investment Platform: Vinovest Review

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Introduction

Vinovest is a platform that specializes in whiskey investment, offering a unique opportunity to invest in whisky casks as a long-term, illiquid asset.

How Buying Casks with Vinovest Works

Step 1: Sign Up and Consultation

First, you'll need to sign up on the Vinovest platform. You may also have a consultation to discuss your investment goals and preferences.

Vinovest Whisky Investment Platform - Click to Find Out More

Step 2: Investment Opportunities

Vinovest offers exclusive allocations to investors through their distilling partners. These allocations often include highly demanded specialty and craft whiskey mash bills.

Step 3: Make Your Investment

Once you've identified the cask or casks you want to invest in, you can proceed with the purchase. For example, in November 2022, Vinovest offered high-rye bourbon casks to clients for $1,415 per barrel.

Step 4: Storage and Insurance

After the purchase, Vinovest handles the storage and insurance of your cask. They manage these logistics for a small management fee.

Step 5: Aging and Monitoring

Your cask will age in a distillery or bonded warehouse. Vinovest allows you to receive a sample bottle from your cask once a year, giving you a tangible sense of your investment's maturation.

Step 6: Selling Your Investment

When you decide it's time to sell, Vinovest will handle the selling process. They offer guidance on the best time to sell based on market conditions and your investment goals.

Step 7: Returns

In one example, Vinovest offered high-rye bourbon casks to clients for $1,415 per barrel. Seven months later, those casks were sold at a contract price of $1,850 each, resulting in a 30.7% return to investors.

Why Casks and not Bottles?

Flavor Improvement

Aging whiskey in casks allows for the development of complex flavors over time. The interaction between the whiskey and the wood of the cask contributes to the final taste, making aged whiskey more valuable.

Value Over Time

Whiskey casks appreciate in value as they age. The longer the whiskey is stored in a cask, the more valuable it becomes, offering a potentially higher return on investment.

Economies of Scale

Investing in casks rather than individual bottles can offer economies of scale. A single cask can hold hundreds of bottles' worth of whiskey, making it a more efficient investment both in terms of storage and potential returns.

Exclusive Ownership

Owning a cask provides a unique form of ownership that can be more directly managed and tracked. It also offers the opportunity for exclusive allocations.

Sample Bottles

Vinovest allows you to receive a sample bottle from your cask once a year, giving you a tangible sense of your investment's maturation.

Vinovest Whisky Investment Platform - Click to Find Out More

Benefits of Using Vinovest

Hassle-Free Investment

One of the standout benefits of using Vinovest is the convenience it offers. You can invest in whiskey from anywhere in the world, and Vinovest takes care of everything else. From buying and handling to storage, insurance, and even selling—Vinovest manages all aspects of the investment. This hassle-free approach makes it easier for both novice and experienced investors to diversify their portfolios with whiskey.

Negatives

Trust and Ownership

  • Not in Your Possession: At the end of the day, the item is not in your possession, and you have to place trust in the company.
  • You are not buying branded bottles: You are not investing in bottles, which means you can't enjoy the artwork or packaging of a specific brand.

Things to Be Aware Of

Long-term Investment

Vinovest highlights that these are long-term illiquid investments. This platform is best suited for those with money they are willing to risk long-term.

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Research and Fees

  • Fair Market Value: Research the whiskey you're going to buy through the platform to ensure it's bought at fair market value.
  • Fees and Commissions: Confirm all the fees and commissions from buying, selling, storage, and handling before parting with any money, so that you fully understand the process and costs involved.

Below is a link to their website where they have a FAQ section where you can research more and as well as get in touch with them.

What is the minimum amount I need to invest?

The minimum investment amount for whisky is 1750 USD.

Conclusion

Vinovest offers a unique opportunity for whiskey investment but comes with its own set of challenges and considerations. It's crucial to do your own research and understand the long-term, illiquid nature of this investment.

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