RareWine Invest Review: A Wine Investment Scam?

 
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RareWine Invest claims that its advisors will help you procure a profitable wines investment portfolio. The company, whose website is rarewineinvest.com, wants consumers to believe that their portfolio offers stable returns with high-risk diversification. Additionally, RareWine Invest states on their website that this kind of investing is more profitable than stocks and real estate.

The company is making a lot of promises on their website which is making them sound too good to be true.

The following statements and claims have been made on the salespage:

  1. That the wine investment advisors launched this business in 2012 yet who.is clearly shows that the website was created in 2016.
  2. That the team has 15 years of experience in trading of wine and exclusive of VAT and duty.
  3. That only limited quantity is available which is sold on a first come first serve basis.
  4. That the price of a wine portfolio is € 16,310 but the minimum investment is € 10,000
  5. That a company called Nordic Freeport is going to store investor’s wine

The company recommends an investment period of 5 years. It suggests that investors can only generate profits and no losses at all.

By making statement such as “highly stable and low-risk investment”, consumers are lured into this deal because it sounds like the safest investment in the world.

Why RareWine Invest may be a scam

Just like the Wine Investment Fund and Cult Wine Investment, RareWine Invest is solicing funds from financially unsophisticated investors.

The reason for recommending 5 years investment period is because the company wants to buy in time while covering up for something fishy that may be going on.

If this is a safe and stable investment portfolio, investors should be able to cash in on their portfolio anytime they wish to.

RareWine Invest salespage is designed to lure investors into this bogus deal by collecting their personal information like names, phone numbers and email.

By filling in the form and sending in your information, you are authorizing them to contact you through the phone to pitch you the supposed wine investment opportunity.

The first thing you’ll hear the caller say after introductions is how wine is a surefire way to make a lot of money. They’ll inflate figures and even exaggerate the growth that you should expect from the investment opportunity.

You should be cock sure that if you request RareWine Invest to send you a valuation report, they’ll do it verbally or use a document containing fabricated figures because they want to show you reasons why you should invest in their offering.

The name RareWine Invest sounds like that of a reputable organization dealing in wine investments. So when a client hears this name for the first time, it automatically starts to build trust between the consumer and the company.

Currently, the company is claiming that their wine investment opportunity is limited. This is a great way to lure investors and to push them into making hasty decisions.

The average client of RareWine Invest will most likely be an elderly person with little to not investment knowledge.

This is what the company targets as the seniors have good cashflow and are desperately looking to diversify their retirement portfolio.

What should you do if you have been approached by rarewineinvest.com?

You should ask them where they operate from. In this case, the company is allegedly operating out of Scandinavia. If so, is the investment opportunity legal and regulated?

In the US and in most parts of the world, soliciting funds from investors and promising them a return is an actively that is strictly regulated.

So if the company isn’t regulated or licensed yet it insists on collecting money from individuals, this should be treated as a red flag.

If you have already lost money to rarewineinvest.com or any other fake investment opportunity, you should learn what other investors are doing to successfuly file a complaint and recover their lost funds.

The Conclusion of our RareWine Invest review

We smell a rat in this wine investment opportunity. It is not legit and the risk of losing your money is very high.

There are two possible outcomes that you can face when dealing with this company. Either you will sell your wine portfolio at less value than you bought it because you were cheated or there is no wine at all.

Anything they will tell you in the sales pitch is just BS. Thanks for reading our review.

1 Comment

  1. Do you want to submit a broker or comment about their scam activities? BrokerProfile is the uncensored forum where you can discuss freely about good and bad trading service providers..
  2. Lars Jensen

    Dear Top Edge Forex,

    Thank you for taking the time to focus on wine investment. However, I wish your effort was based on facts and knowledge from people in the business rather than speculation and personal opinions.

    On behalf of RareWine Invest, I now go through your allegations one at a time, and I wish that this may lead to a more nuanced dialogue;

    1. You question the years 2012 and 2016. RareWine Group has its roots in 2006 and was founded by Danish entrepreneur, Rasmus Nielsen, who still is behind the company today. RareWine Invest is part of RareWine Group, which is one of the biggest trading companies in the World within rare and fine wine and spirits. As part of our trading company, we started to work with wine investment professionally in 2012. Until 2016 the business area grew big, and we established a company to focus solely on wine investment. So RareWine Invest was launched in 2016.

    2. You question that we have 15 years of experience trading rare and fine wines. It is more than 15 years to be clear as the trading company of RareWine Group started in 2006 and has become one of the most significant in the business worldwide.

    3. You mention that ‘limited quantities’ signifies this could be a scam. In that case, you should research the wine market to see how likely you can provide unlimited quantities of Domaine Leroy’s Musigny wine just to come up with an example. To spare you the time of research, as it seems that you prefer that, I can ensure you that there are no more than 500 to 600 bottles in an average vintage of that particular wine. When dealing with products that experience limited production and high demand, the offers will be handled on a first-come, first-served basis. Considering that we have more than 1600 investors worldwide, not everyone can have Leroy’s Musigny in their portfolio. And this is just one example to clarify why fine wine is considered to be in “limited quantities”.

    4. The portfolio price you mention, € 16.310, is just an example. You imply that one should be aware because it is not corresponding with the € 10.000 minimum investment we mention on our website. I can tell you that we have portfolios ranging from € 10.000 to more than € 10 million. The portfolio of € 16.310 you found is a classic startup portfolio for a first-time investor, but the investor can freely choose the size of the investment, starting from € 10.000 and up.

    5. It is correct that the wine is stored at Nordic Freeport as you write in the article. Nordic Freeport is our storage company and is naturally also a part of the RareWine Group. Nordic Freeport is a so-called customs or bonded warehouse if you prefer, meaning you can store wine and spirits, for example, ex VAT and excise duties. Nordic Freeport is operated with permission from the Danish tax authorities, who also regularly visit to ensure that everything is according to law.

    6. As you suggest in the article, there is nothing sketchy in a long-term investment. Many investments are more suited for a long-term horizon without getting in dept with other assets. If you take a deep dive into the wine market, you will find that wine prices rise as availability becomes limited and the wine gets better as it matures. In a new vintage, all bottles are not drunk on the first day. It takes time for consumption to lower the quantity of bottles available on the market. Therefore, it is only natural that a 5-year horizon is more attractive than a 2-year horizon. And if your strategy is 10-years, it is even better. That said, investors can at any given time put their portfolio for sale – we just recommend a horizon of at least 5 years.

    7. You speculate that our portfolio managers on the phone promise that wine investment will generate a lot of money. This shows that you have yet to try to reach out to our portfolio managers in your research because we never communicate high returns. We are perfectly aware that wine investment is not bitcoins, and we are very clear about that in our alignment of expectations with potential investors. High returns are not an argument for investing in wine. Wine stands out as a low-risk asset, a physical object with low volatility and no gearing. We do not exaggerate numbers, as there is no need to. Everyone can look at the numbers at wine-searcher.com or Liv-ex, for instance – London International Vintners Exchange (the so-called British wine exchange). Even our sales prices are being overlooked by a third party (Deloitte) to ensure transparency.

    8. In the article, you insinuate that evaluation reports are delivered verbally. That is also untrue. Before eventually becoming an investor, an investment simulation is sent on the specific portfolio that follows the strategy agreed upon with a portfolio manager. Furthermore, all investors have access to our online investment platform and can always keep track of their portfolio’s development.

    9. Again, you speculate about our target group being seniors. You even dare calling them unsophisticated investors. I am sure many investors will find that offensive. The average wine investor through RareWine Invest is 40 – 55 years of age, an experienced investor, and wine is just a part of their existing portfolio.

    10. You mention that we “allegedly” operate out of Scandinavia. Well, indeed, we are. You are very welcome to come by and visit us to research a bit more for your review. RareWine Group’s HQ is based in Aalborg, Denmark. Also, we have facilities in Vester Hassing (Nordic Freeport) and Copenhagen, all in Denmark. Besides that, we have established offices and have native people on the ground in Amsterdam (Netherlands), Stockholm (Sweden), Geneva (Switzerland), and Milano (Italy). We live up to all regulations required of us and comply with KYC, AML, etc.

    11. You suggest that we promise returns. Again, this is false indeed. Nowhere in our communication do we promise returns. In our investment guide and other sales materials, we write the following sentence: “Note: Historical returns are no guarantee of future returns, and actual realized returns may differ from expectations. We point out that the return on investment in wine can be negative”.

    That said, data show that wine has proven to be a stable investment over the years. We are both humble and proud to be one of the leading wine investment companies trusted by more than 1600 investors worldwide despite your – in our opinion – highly inadequate review.

    Hopefully, my reply to your review will pave the way for a healthy dialogue and a more in-depth review.

    Lars Jensen,
    CMO, RareWine Group & RareWine Invest

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