Investing in Wine Through The Cellar Platform
Investing in wine with The Cellar platform is a great way for you to diversify your portfolio and take advantage of potential profits.
With a knowledgeable and professional team by your side, you can explore the wonderful world of investing for yourself and build a robust portfolio.
Can you relate to the feeling that finding good saving opportunities is so hard now, especially since traditional savings through banks have turned sour due to decades of zero interest rates?
Consequently, people, especially young people, turned to investments, often risky ones like crypto, to make some money out of their money.
But it doesn’t feel good for most of us because many prefer a rather stable saving proposition.
So, I stumbled across fine wine through TheCellar, and to my surprise, I learned that fine wine is also an asset to invest in—currently one of the best of all.
It had a strong positive return last year, despite all the world’s problems and wars, whereas most other assets (like stocks, crypto, and gold) had severe declines.
Diving deeper into this financial secret, I learned that this amazing performance has existed for more than 15 years, outperforming investments in stocks over that same period.
Fine wine is considered safe, with steady returns and low dependency on the financial market—that’s why it’s labelled as “liquid gold.”
What’s more, The Cellar allows you to “save into fine wine” through savings plans that address our need to save up little by little over time.
So far, it was only possible for the rich to invest in fine wine, with 5-digit minimum amounts, and it’s so cool that now with TheCellar it gets accessible for every one of us—starting from £25 per month.
I have just started investing in wine through the Cellar Platform with £25 per month for now. As you can see, I have £30.02, and I got £5.00 for signing up!
The return is great and it’s already making me think of transferring more of my ISA to Nutmeg (which is currently on a downward trend)
These flexible plans help you develop good financial habits and take control of your finances.
Additionally, the peace of mind that comes from having a financial cushion in place can be extremely valuable, especially in times of uncertainty or unexpected expenses.
Another benefit is that TheCellar provides a £5 starting balance, so you can try it out without making an initial contribution.
Here is a bit of background information I have found so you can get an idea of how it works and the jargon behind it.
What is the history of saving?
Saving refers to the act of setting aside a portion of one’s income or wealth for future use. It is a crucial financial behaviour that helps individuals plan for unexpected expenses and achieve mid to long-term financial goals.
Throughout history, people have engaged in various forms of saving for different purposes. In ancient times, for example, people saved food, clothing, and other necessities for times of scarcity or emergency.
In more recent times, people have saved money in banks and other financial institutions to earn interest and protect their savings from inflation.
Today, the role of saving has become even more important as people face increasingly complex financial decisions and a rapidly changing economic environment.
Why fine wine as a saving asset?
Fine wine (also known as rare or collectable wine) refers to high-quality wine that is produced in limited quantities and has the potential to increase in value over time.
Many people consider fine wine to be a perfect saving asset due to its combination of rarity, quality, and potential for appreciation.
Fine wine is often produced in small quantities by top winemakers and is made from the finest grapes grown in the best vineyards. These factors, combined with the skill and expertise of the winemakers, result in a wine that is of exceptional quality and has the potential to age gracefully for many years.
As a result, fine wine is highly sought-after by collectors and connoisseurs and can command high prices at auction.
In addition to its inherent quality, fine wine has the potential to increase in value over time due to a variety of factors. These include supply and demand dynamics, the reputation and success of the winemakers, and the overall health of the fine wine market.
As a result, fine wine can serve as a hedge against inflation and a way to preserve wealth over the long term.
Of course, it’s important to keep in mind that investing in fine wine carries some risks, as with any investment. That being said, many people have found fine wine to be a rewarding and enjoyable way to save and invest for the future.
The power of compound interest
One of the oldest and most powerful financial concepts is compound interest. For various reasons, it has been forgotten over the last two decades, and young people didn’t have the chance to learn about it and experience it later.
Compound interest is important in savings because it allows individuals to earn interest on their principal investment and the accumulated interest from previous periods.
This means that the longer an individual leaves their money invested, the more it will grow through compound interest. This can be a powerful tool for building wealth over time, as compound interest can significantly increase the total amount of money that an individual has saved.
Additionally, compound interest allows individuals to earn a higher return on their investment than simple interest, which is only paid on the principal amount.
For example, let’s say you invest £1,000 in a wine that is expected to appreciate at an average rate of 10% per year. After one year, your wine would be worth £1,100 (the initial £1,000 plus 10% interest).
If you held onto the wine for another year, it would be worth £1,210 (the initial £1,100 plus 10% interest). As you can see, the value of your wine continues to grow over time as interest compounds.
TheCellar structural setup
TheCellar is a UK-based fintech that provides its customers with a savings application for fine wines. Importantly, its customers physically own the purchased fine wines; TheCellar’s saving application just serves as a technical facilitator for the customer.
The fine wines are kept “in bond” in an HMRC-approved wine storage facility in London. This setup and structure come with various benefits for the customer:
a) in the event TheCellar would fall into bankruptcy, the fine wines would still belong to the customer, thus ring-fencing them from any insolvency proceedings;
b) the buy-and-sell transactions and respective profits are considered exempt from capital gains tax; and
c) The fine wines are insured with full coverage.
Taking advantage of the “best-kept secret” in the financial market: fine wine, or “liquid gold,” as a saving asset
Now possible for every budget with flexible plans from £25
If you want to have a look before deciding at their website, the link is here
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