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Q:  What are “investment grade” wines?
Q:  Should I invest in wines from the London market or Bordeaux market?
Q:  How do I make sure my investment is secure?
Q:  Will where I store my wines really affect its value?

Q:  What returns can a good wine investment give me?

 

Q:  What are “investment grade” wines?

A:   Our research has shown that 80% of all investment grade wines come from Bordeaux, France. The remaining 20% of investment grade wines come from Burgundy and Rhone in France and from Italy and Spain. Only a very small amount of the best wines from these countries are considered investment grade as less than 1% of the world’s wine production is considered investment grade. There are many factors that must be satisfied before a wine is considered investment grade. But in general, first growth wine from Bordeaux from an outstanding vintage will be considered investment grade.

 

Q:  Should I invest in wines from the London market or Bordeaux market?

A:  Storage and travel history (provenance) greatly affects wine prices. Wines that have been stored at the chateaux or in professional storage in Bordeaux since the time they were released command the highest prices. Wine that has been shipped out of Bordeaux (e.g. wine sold in the London, US or Asian markets) is worth significantly less. In general, the older the wine, the more of a premium Bordeaux-stored wine will fetch. Bordeaux-stored wine is therefore considered more of an “investment grade” wine than say London-stored wine. Investment wines that are direct from the chateaux/Bordeaux achieve a premium of 30% or more (sometimes even more than 100% more).

Here are some examples:

“…(1961 Latour) from Latour’s own cellars at a premium of US$56,400…”  (Financial Times, Sept 2004 hammered at Christie’s auction house)

Compared to a case (1961 Latour) that was stored in London which only fetched US$20,570 (Decanter, June 2005)

 

Q:  How do I make sure my investment is secure?

A:
  Insist that your wines are stored in your name, with full replacement insurance in your name (not merchant’s name) and insist that you are given the appropriate insurance certificates to prove this.

EQUITY's partner in insurance is AXA Insurance France.

 

 

 

 

Q:  Will where I store my wines really affect its value?


A:  It is extremely important to store your wines in professional wine storage facilities in Bordeaux and NOT any other country as the value of these investment wines will drop significantly once they are shipped out of Bordeaux.


Wines stored with merchants or in professional storage in London are usually worth 20-30% less than wines that have never left Bordeaux.


STORE YOUR INVESTMENT WINES IN BORDEAUX!

See [Bordeaux vs. London Market] 

 

Q:  What returns can a good wine investment give me?

A:  Historically, investment grade first growth Bordeaux wines (from the Bordeaux market and NOT the London market) have yielded 12-18% compounded annual growth. Please see link below for more information.

 

[Investment Returns]