Over the festive period, Mintus featured in an article in The Times by personal finance commentator David Brenchley. As alternatives such as wine, whisky, and art, have become increasingly attractive investments, Brenchley discussed how platforms like Vinovest and Mintus have opened up these alternative asset classes to investors.
“Stocks and bonds have suffered big falls in 2022”, writes David Brenchley. “The S&P 500, the index of big US companies, fell 20 per cent this year, while global bonds slumped 15 per cent.” This unusual situation – traditionally bond markets have risen when stock markets have fallen – has created an appetite for alternatives assets to act as protection against the downturn.
According to a survey by alternative investment platform Asset Tribe, of those already investing in alternative assets, 53% said that they would invest more over the next 12 months. Of those, 40% said they’d invest in fine art.
Brenchley interviews investors who have used WineCap, Whisky Partners, and Mintus, to invest in wine, whisky, and art respectively. What is clear is that for many it’s a marriage of passion and investment returns, though separating the two can be a challenge.
Brenchley’s conversations with investors in these alternative assets reveal that although historic performance has been strong, “no market rises for ever.” As he writes, “[Justin] Gibbs said that more wines within the Liv-ex 1000 index fell in price than rose in November, suggesting price falls are becoming widespread.” (The Liv-ex 1000 index tracks 1,000 wines from across the world).
What Brenchley ultimately reveals is that demand is integral to the sustenance of these markets. As Matthew O’Connell, head of investment at Bordeaux Index, explains: the linear growth of whisky over the past decade was “driven by a recent explosion in luxury consumption and the lack of availability of old whisky.”
Meanwhile what makes art such an effective store of wealth in troubled economic climates is limited supply. As Mintus CEO, Tamer Ozmen, explains, artworks are all tangible assets — they are real – which means that, “there is a very limited supply of contemporary art that you can invest in versus a relatively constant level of demand.”
You can read the full article here (subscription required).
(Image credit - The Times)