How to invest in wine? Buy some, drink some, sell some

How to invest in wine? Buy some, drink some, sell some

iStock_16111672_LARGE

Spectator.co.uk

What to buy

The traditional approach has always been to buy en primeur (whereby the most recent vintage is sold by producers to merchants then on to their customers while still in barrel, for delivery once bottled) and to concentrate on Bordeaux and, to a lesser extent, Burgundy, the Rhône, Champagne and Port and, increasingly, the Super Tuscans of Italy and the so-called icon wines of the New World such as Penfolds Grange (Australia), Opus One, Screaming Eagle (California) and — possibly — Almaviva or Seña (Chile).

‘Bordeaux is the bedrock of any cellar,’ explains Tom Cave, head of customers’ private reserves at Berry Bros & Rudd. ‘2015 Bordeaux is well worth a look, especially since 2016 isn’t looking too encouraging. Otherwise I’d recommend going back to 2009 and 2010 Bordeaux, which were pricey on release but are now quite friendly; or 2005, which is a proven vintage of real quality.’

Robert Boutflower of Tanners suggests spending as much as you can on your purchases because, as with property, it pays to trade up. Added to which, Boutflower points out, if you buy a £100 case of claret and pay upwards of £10 a year storage, you’ll need it to put on 200 per cent to break even when you sell it. Buying at £1,000 a case carries one-tenth the storage charges by comparison.

Canny investors follow the wine trade cliché of buying top wines in run-of-the-mill vintages and run-of-the-mill wines in top vintages, when they punch above their weight.

Just remember that it’s all too easy to think that wines appreciate much more quickly than they do — and although a wine could shoot up overnight after a top score from the uber-critic Robert Parker in his pomp, it’s more of a slow burn these days.

 

Old world and New World icons: a royal tasting of Penfolds Grange

Old world and New World icons: a royal tasting of Penfolds Grange

Taken from http://www.spectator.co.uk/2016/10/how-to-invest-in-wine-buy-some-drink-some-sell-some/ 

UK Agora
1 Comment
  • You coludn’t pay me to ignore these posts!

    11th January 2017 at 3:53 am

Leave a Comment