Wines From the Vineyards of Bordeaux Make The Best Wine Investments
Wine Investment Trends...

More and more, fine wine investing is gaining appeal with investors around the globe. With so many more traditional investment avenues failing to adequately perform, the idea of broadening into alternative investments like fine wine is quickly becoming more and more popular. 2009 helped bring the market back to its current state after the falls sustained in 2008. The 2005 Chateaux Lafite Rothschild notable recovered from that dip, climbing back to more than £10,000 per case in bond after falling £4,000 back in 2008.

2009 also gave us one of the most exceptional Bordeaux vintages in recent history; Robert Parker, the all-powerful US wine critic stated that, “for some Médocs and Graves, 2009 may turn out to be the finest vintage I have tasted in 32 years of covering Bordeaux”. It seems that this vintage ended up becoming one of the most expensive ones on the market, within wines like Chateaux Lafite and Latour going for more than £10,000 per case. These shocking prices have done little to sway interest, as investors quickly snapped them up on location despite their hefty price tags. Rises like this have so far marked 2010 as a great year for fine wines.

With more and more top Claret being consumed in Asian markets, it is no wonder dwindling supplies have clearly pushed prices up over the past year. Veterans may not be able to get over the fact that a case of First Growth Claret one worth less than a thousand pounds is worth substantially more this year. Even a case of Lynch Bages, once selling for just a couple of hundred pounds, would be startling to all but the newest investors to the market. Veteran buyers may, as a result, be reducing their purchases, but this has seemed to have little to no impact on the 2010 market as hoards of newcomers arrive to replace them.

The largest changes in the market this year have come from Lafite Rothschild, with this chateau’s wines commanding a demand that seems almost insatiable at this point. Proven vintages like their Grand Vind trade around £10,000 per case. The 2008 Lafite saw a 28.3 percent change between September and October this year. The 2009 vintage was seen on Liv-ex at £12,777 in October. Even their young vintages like Carruades de Lafite go for around £2,500 per case. This may seem hard to swallow for those who recall the 2005 vintage, released in June 2006, sold for less than £400 per case. Perhaps a bubble in Lafite wines is coming?

While there is no clear sign that demand for Lafite will drop at any moment, investors must take into account that there is only so much they can produce. Consequently, investors will have to seek other wines to accommodate increasing demands. Latour, Mouton, and Margaux may be just the key for investors in 2011.