Alternative assets – from works of art to vintage wines and whiskies to luxury watches – have long been a haven for open-minded investors when traditional assets like property and bonds underperform. However, expert guidance remains essential to navigating these markets, which can rely on what appear to be arcane systems for valuing assets. Happily, a rise in middleman platforms specialising in the curation and procurement of alternative investments is democratising this process.
Scott Phillips, CEO and founder of Rise Art, the London-based online gallery, has observed this desire for more mindful transactions. “Over the past few years, we have found that people’s attitudes towards luxury have shifted slightly. Rather than just buying a brand, our customers tend to be looking for experiences and connections.”
Elsewhere, Cask Trade, a firm specialising in the consultation, curation and portfolio management of whisky bottles and casks, with bases in Hong Kong and London, has been helping new investors hone in on how to invest in their first whisky cask.
“We see a wide range of first-time buyers: whisky lovers who want to start a romantic journey of owning a cask, adventurous young investors seeking to diversify their portfolios, as well as indie bottlers who have just started their bottling business,” says Simon Aron, founder of Cask Trade. “It’s also a growing trend in the Asia market for parents to pick casks from their child’s year of birth as a memorable 18th birthday gift.”
Platforms such as these provide the perfect ecosystem for those starting their alternative investment journey. They help newcomers have meaningful and genuine conversations that the primary market can leave unaddressed. Their professional connections within their respective industries give investors access and transparency in pricing that would otherwise be unavailable to neophytes.
For example, the cost and process of storing, bottling and selling whiskies can be daunting to new investors – let alone the myriad laws, taxes and other fees that emerge when one is later looking to sell. Cask Trade also provides insurance advice on auctioning and bottling, with storage options that run around HK$4-7 a week depending on cask size and location.
“By speaking with Cask Trade directly, customers are effectively speaking to the source – we own the casks we offer instead of brokering them. That means what you see is what you get, without having to pay a cut to the middle person,” Aron said.