Barriers to Entry
Fine wine production is controlled by law. Production methods, weather conditions and geographic constraints influence quantity and yields. These parameters contribute to the scarcity of fine wine.
Due to globalization and new emerging economies, the world’s wine consumption is higher than ever before. Combined with limited supply, this growing consumption forces wine prices to go up.
Ratings are Continuous
Wine scores, as determined by expert wine critics, influence the market perception of wine and its value. We have access to a live exchange of wine values and scores.
Better with Age
Fine wine quality improves over time. When stored properly, wine appreciates with age. This is one of the key aspects that make it a great medium to long-term investment.
The more people drink wine, the rarer it gets, and the more desirable fine wine becomes.
Why Wine Futures?
4 Unique Values
Unique Investment Opportunities
Traditional wine investment platforms can be limiting, as they require you to own specific bottles. At Dragonglass, we offer a different approach – you'll own a share in our fund, giving you access to a broader range of investment opportunities. By pooling resources and negotiating as a whole, we can achieve better returns.
Strong Buying Power
Investors' optional allocation of the wine futures is based on their prorated holding of the total fund, ensuring fairness and transparency. By leveraging on the fund’s resources, investors can access a greater spectrum of investment opportunities, potentially resulting in higher returns than individual investors.
Optimal Storage Options
We offer flexible options for our investors. Wines can be shipped directly to fund subscribers, or stored on their behalf. Fund wines are stored in situ at the Chateau where feasible. This ensures that the wines are stored in optimal conditions and can be accessed easily for potential sales or tastings.
Value for Money
Investing in wine futures requires a thorough analysis of factors such as producer reputation, vintage, grape quality, market trends, and potential appreciation. By carefully evaluating these elements, our market research team can make informed decisions that maximise purchase power and future returns for fund members. We will apply a small % administration fee to the cost price of the wines to be purchased. (Note our prices will be below retail).
Acquiring the world's best brands
for the funds financial goals and to leverage
collective buying power for our members.
LIV-EX FUTURE WINE INDEX SINCE 1988
Since January 1988 the CAGR over a ten-year hold has averaged 12.9% (reaching a high of 18.4%) reflecting the low-risk factor of investing in wine.
HIGH PERFORMING ASSET CLASS
12% PA Growth in Value
The last 35 years are proof that fine wine is one of the best performing assets, with a compound annual growth rate of 12.9%.
DIVERSIFIED ASSET CLASS
Even Performed Well during the Covid Crisis
The value of fine wine is determined by a completely unrelated set of criteria to publicly-traded stocks or bonds. During the 2020 pandemic and recession, for example, the value of fine wines increased by a whopping 13%. This highlights a powerful negative correlation to the wider market performance. For forward-thinking investors, fine wine could just be the strategic hedge against market volatility they’ve been looking for.
TANGIBLE ASSET CLASS
Physical assets like gold, property, or fine wines can feel extremely reassuring during periods of market turbulence – which becomes reflected in their value. Tangibility is one of the most significant benefits and differentiators of fine wine as an asset.
NEGOTIABLE ASSET CLASS
Ability to buy at the right price at the right time
With fine wine, the process of buying and selling is completely different to that of the stock market. Unless investing with an index fund or something similar, you’ll likely find yourself at exclusive auction houses or negotiating a sale privately. Just like buying a property or bidding online, this opens the possibility of getting a better price than you expected.
PROTECTIVE ASSET CLASS IN DOWN MARKETS
Naturally Grows Over Time
Like other tangible assets, including gold, art and real estate, wine has a low correlation with global equities and therefore is excellent for a natural hedge. Between Jan 1, 2020 and March 31, 2020, when the S&P 500 fell by more than 23%, the Liv-ex Fine Wine 1000, (index that measures the price performance of the 1,000 most traded wines), only fell by roughly 4%.
Why Invest in Wine?
Alternative assets say to people that they can generate for you a higher return without the leverage tied to the market. They’re able to say: “I’m going to generate alpha for you, and I’m going to generate a very consistent level of alpha that’s going to be irrespective of whatever the beta does”, and they constantly prove it too.
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