The 2009 Bordeaux prices have officially reached new madness. Only the other day, a case of 2009 Chateau Lafite sold for £10,000 on the Liv-Ex fine wine trading exchange. A ridiculous price it seems, but even more so when you find out the Chateau has not even officially released the wine yet.
There are whispers that Bordeaux has seriously over estimated demand, and that prices are highly inflated. Here in Australia, there is possibly one, maybe two wines that regularly meet price expectations anywhere near the crazy Bordeaux prices, Grange Hermitage and Henscke Hill of Grace. There are of course others, but these two are probably world renowned in the wine community.
So is wine an asset in the same class as shares, property, or business? For me no, as they don’t last long enough in the cellar before they completely disappear. Certainly in the short term, the right purchase of the right wine at the right time can provide sensational returns. In recent times the 2008 vintage of Lafite Rothschild has returned investors over 100% on their investment if they purchased the wine at release in May 2009.
With technology increasing as to the prediction of the quality of vintages, such as long term weather patterns and vine maturity, predictions of vintage quality can help the astute investor purchase wine as futures a long way out.
In my mind, purchasing wine is always a sound investment, as it always makes me smile and enjoy when consuming!