The Best Opportunity To Invest In Wine Is Now
March 6th, 2010The wine market is a funny thing. It is essentially a luxury product and yet millions of bottles are produced each year.A few people’s personal taste can mean life or death for a wine and they can flow in and out of popularity almost weekly. However, one thing will always remain the same in the wine world, and that is there is potential gold mine of money to be made. Now so more than ever.
The prices of fine wines has been on the increase for the last couple of decades. As better storage facilities and more advanced manufacturing methods produce higher quality wines, so too does the price people are willing to pay for them go up. Sotheby’s wine expert Jamie Richie even said “Prices had risen to nearly unsustainable levels last spring”.Having said this, now that we find ourselves in a very weak economy, these fine wine prices are starting to come down to realistic levels. January 2009 saw a relatively big downturn in prices averaging 1.2% according to Liv-Ex 100, the tracking index for the top 100 collectible wines. This is trend that experts expect to continue for while and can in fact be seen throughout the wine sector, from wine production to the sales of general shot glasses.
A bottle of 1978 Montrachet Domaine Romanee-Conti recently sold at auction in Chicago for just under $4,000. That very same bottle sold at a Sotheby’s auction a few years ago for $23,929. This sudden drop basically means that if you’ve ever had an urge to start collection yourself, either as an investment or just a hobby, the best deals are just around the corner. Experts think that the market will be at its lowest point by the end of the year, after which it will start to pick up again slowly. Tableware and drinking accessories are expected to improve as well.
Joss Fowler, a wine investment expert from Berry Bros & Rudd has some tips for getting the best return. He recommends that a very good bet is, and always has been, a Red Bordeaux as they age beautifully. Also, always go for the best vintage and don’t scrimp on cost, get the best you can possibly. Stay true to this rule and you’ll be filling up your wine racks sooner than you think.












