Wine & Spirits
Investment Report
February 2021
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Rhone Valley led the winners this month, with an impressive jump in price from Hermitage La Chapelle Jaboulet. The Rhone valley market volume still remains low, but growth is good.
The winner this month was Hermitage La Chapelle at an 18% increase. Haut Brion 1998 had a 9% increase and Mouton Rothschild 2018 had an 8% increase. Mouton Rothschild 2018 has risen 18% in just two months.
What will wine investment look like post-pandemic?
The future of Hotels and F & B reported by hospitality.net has been very bleak. But the wellness dining market will keep rising as we can see an increased awareness of eating and living healthy.
If the pandemic has taught us one thing, it is eating healthy and wholesome food is key to a better life. With most people working from home, more time is spent preparing better meals.
Many producers of the best fine and rare wines in the world use biodynamic and organic winemaking techniques. They had the capital to start early. The techniques to organic winemaking always produce better quality wine. Many use a horse and cart to plow a field which is very popular among the top Bordeaux estates.
When visiting the famous Bordeaux Chateau Pontet Canet, I was amazed at how their herbalist would scour the region for special herbs to make a tea, that they would spray across the vines to nourish and protect them. The lengths they go to produce one of the most amazing wines in the world.
It is healthier to drink the more expensive wines which we also invest in. Have you ever bought a cheap bottle of wine and wondered why it gave you a headache? It could be the level of sulfites that didn’t agree with you.
Over the next 24 months, as we reach a peak in the financial markets, fine wine is likely to continue to grow more and more aggressively.
Cash always moves into hard assets, when investors look to protect the gains they’ve made. Especially over a three-year bull run.
The next 12 months have a positive outlook for fine wine investments. Try to build 40% of your portfolio in wine going into the next 18 months. You will not regret it.
How our service has changed the return on investment
Wine Investing with Sure Holdings has become a passive investment.
When we lowered our margins by 40% at the end of 2019, we took a big risk with what could of been a 40% decline in revenue.
15 months later and it was the best decision we made.
Revenues have actually increased and we are now pivoting client portfolios into better wines quicker than before while creating more diversity. This increases your return on investment whilst maintaining good balance in your portfolio.
Wine investing with Sure Holdings now looks like this.
Analysis
Review client portfolios bi-weekly to asses:
Initial purchase price – Current market price – Purchase date – length of time invested.
Current market conditions overall and market outlook specific to the wine.
Initial target price achieved?
If under-performing, analyze if should be sold.
If the timing is right, the wine is placed for sale and an automated email is sent to the client.
Negotiations
Regularly negotiate and buy new wines, based on market price, quantity in the market, historical performance, quality of wine and classification.
Look at current market performance overall and market condition of specific classifications. Further drill into the wine and its current performance/demand in the market.
Allocations
As a new wine is negotiated, logistics will monitor clients who are in credit to re-invest.
Check if a client has completed a portfolio liquidation form. Allocate the funds accordingly, any balance reinvest for the client.
Liquidations
Client will receive a credit note and a bank transfer confirmation when the funds have been remitted.
Re-Investment
Client will receive an invoice for the new wines followed by an email from the clients associate advising what has been re-invested.
Clients now see their portfolio grow much faster because there is no delay in deciding whether to buy or checking if theres free capital to invest, plus bigger and better deals can be negotiated and applied quicker. Allowing more focus on the pick of the investment than the distribution.
These procedures of investing are proving to be very rewarding indeed for investors.
Let us know if you have any questions.
Results from our research into whisky auctions:
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- Whisky is best sold via the auction market to achieve faster sales and better pricing.
- There is a significant difference in pricing from one auctioneer to another including their suggested starting price at auction.
- We have seen potential in some auctioneers and are looking to place several whisky into upcoming auctions.
- The pricing of whisky can vary between auctions, therefore valuing a whisky before it has sold at auction can be difficult.
- Our whisky valuations will be changing, whisky will be valued at the sold auction price instead of data we collect from the market.
- Proposed selling prices are often much lower than the actual price sold at auction.
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We have narrowed down to the 5 best rare whisky auctioneers and we are creating a smooth selling process to offload our clients whisky investments when the return on investment has hit its target.
If you are selling wine, Place your sell order at the current bid. Adjust the price in increments of 2%-3% to entice a buyer for a quicker sale.
What wines would be best to buy right now? Bordeaux remains our favorite market. Our pre-negotiated recommendations are available for you to invest in confidence knowing you are buying in at market price or lower.
Latest Offers are emailed every Monday and Thursday from WineTrade@
The major indices table below, compares the Invest Into Wine Index with the London Vintners Exchange Index and some of the world’s stock markets.
Fully managing your portfolio is part of our standard service
If you ask a financial investment firm or bank to fully manage your portfolio, they would ask you to invest a minimum of $250,000 Dollars. Some require even more capital before they will offer a portfolio management service.
With Sure Holdings, even one case of wine will be fully managed by our experts in the fine and rare wine & spirits market. With over 50 years combined experience, our team knows when to buy and when to sell to maximize growth on your hard earned money.
Email support@sureholdings.com
The Figures for January
This month’s valuations showed the Bordeaux market has increased by 0.60% for the month. Champagne and Rhone Valley wines have increased 2.81%.
– 34.8% of the wines valued showed a positive return, while 17.0% showed a negative return and 48.2% remained the same.
– 82.3% of our portfolio is Bordeaux while 14.2% is Champagne and Rhone Valley and our new addition of Whisky investments make up 3.5%
– The overall change for ALL the wines valued this month was UP +0.78%
Scroll down for the winners and losers for January versus February.
Below are the five, top and bottom movers compared to the previous month. Over 100 wines are valued each month. The wines valued are ALL OUR recommendations from the last fifteen years.
The new prices, are reflected in your online portfolio every month.
Please log on to our website SureHoldings.com to view your wine portfolio and email us back if you wish to ask anything about which wines that can help build your wine portfolio.
Yours Sincerely,
Client Services
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New Year of the Bull
Will the bull live up to its name in 2021. the stock market bulls have been in charge mode for a while already. But does the year of the bull in Chinese mean bullish for stocks or hard assets like wine? Or both? The year of the Bull does signify wealth.
Crypto Currency is also a hot market right now. With returns in the 1000% and what seems like a long way further to go. New millionaires and billionaires are being made from crypto currency as the technology is adopted in business and transactions over the next 5 years. Bitcoin hit its high of $58000 before crashing down to $48,000 overnight. If you’re not a billionaire’ in 10 years ‘it’s your own fault,’ said 20-year-old bitcoin tycoon. Volatility is crypto currencies strength when it comes to trading.
Another hot area is green energy, the race for a battery powered car is on. Not only green energy but self driving is also on its way to becoming the norm in the near future. Most of the worlds car makers are now producing excellent electric cars and this is an exciting space with the growth of Tesla share price rising reaching over $800 recently. Elon musk commented, “in 10-15 years owning a petrol car will be like owning a horse”.
We recently visited the Tesla Gigafactory in Austin, Texas. They built one in Nevada in 2 years, see the middle image below, the one at top and bottom of the image is construction in Austin, Texas expected to complete within 6 months, The $1 billion, 5 million-square-foot plant, referred to by Musk as Giga Texas, should finish construction by the fourth quarter of this year. Every constructed factory, they try to build faster and with less energy.
Please email Support@SureHoldings.com
