Wine & Food

Snooth User: canhthongxanhtq

Fine Wine Investment Performance in recent decades

Posted by canhthongxanhtq, Aug 20, 2015.

nvesting in wine is by no means a new phenomenon. Many years before fine wine became truly global in the mid-1990s, wily buyers would often buy more than they intended to drink, selling the excess at a later date to fund new purchases.
( điểm nổi bật của bright city)
In today’s market, as the global demand and consumption of the World’s finest wines increases, opportunity exists to build a collection of wines to provide a financial return over the longer term.

Whilst it is difficult to find totally accurate records and therefore data, it is fair to say that the prices for the very best wines have risen by an average of over 10% per annum over the past 25 years, with quiet periods (for example 1998 -2002 and more recently, falls in the market from late 2011 until late 2012) being more than balanced out by the busy ones (e.g. 2005 to 2007 and late 2008 until mid 2011).

The best wines of Bordeaux, Burgundy and a small number of iconic wines from other regions have proved to be sound investments over the past twenty years, though it is important to remember that one must take a long term view. The fine wine market enjoyed an exceptionally buoyant period from 2005 to 2007, and Berry Bros. & Rudd customers who bought the best wines from Bordeaux at the right time will have done very well indeed. Wine prices are not immune to economic malaise however, and the global financial crises did bite in October 2008 and again in 2011. At both times, prices – notably those of the top 2005s in 2008 and the top 2008s in 2011 – dropped off from their peaks.

Since the last quarter of 2012 we have seen a slow stabilisation of the market. Throughout 2013 prices remained relatively flat, certainly with regard to the finest wines of Bordeaux. Popularity for the finest Bordeaux wines remains high but as established and emerging markets mature and develop, interest in other regions has increased. Whilst Bordeaux should remain the key focus, wines from other countries and regions may have a larger role within the broadening market. The finest wines of Burgundy, Rhone, Champagne, Italy and the iconic wines of the New World are now a consideration for the collector and investor alike. 

From the latter part of last year and into 2014 we have seen a strengthening of market confidence. Activity has increased in recent months, with many buoyed by the perception of value within the market. With a long term view, potential opportunities can be found throughout the market.

The fundaments behind wine investment are relatively simple; fine wine is a tangible asset, it is a luxury product that many aspire to own, consume and know more about. For many people it's much more useful than gold, and easier to enjoy than art. Interest in wine is growing at all levels. Most important is supply, which is limited; the supply of any particular vintage of, say Ch. Margaux, is constantly diminishing and in the case of younger vintages is constantly improving and so desirability increases.

 

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Replies

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Reply by canhthongxanhtq, Aug 20, 2015.

Investing in wine is by no means a new phenomenon. Many years before fine wine became truly global in the mid-1990s, wily buyers would often buy more than they intended to drink, selling the excess at a later date to fund new purchases.

(chung cư bright city)

In today’s market, as the global demand and consumption of the World’s finest wines increases, opportunity exists to build a collection of wines to provide a financial return over the longer term.

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Reply by dmcker, Aug 20, 2015.

I've approved your post, rather than banning it as spam, but you need to get more personal and real here. Are you asking for our experience in wine investing, or trying to sell us some derivatives, or...? Am also curious about how you came up with that 10% appreciation rate. Is that across the entire market, or particular segments?

 

Or are you someone else who has visited Snooth under a different name on a few occasions?

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Reply by outthere, Aug 20, 2015.

Cafe Linh...

  • Rule 1: A quick google search of the first couple sentences always reveals if there is fraudulent use of text. http://www.bbr.com/fine-wine/investment
  • Rule 2: Never approve 1st posts that include links unrelated to the discussion.
  • Rule 3: Refer to rule 1 and. 2
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Reply by GregT, Aug 20, 2015.

And before even applying the rules, simply delete if it's a post from Cafe Linh. Saves the trouble of the Google search.

 

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Reply by dmcker, Aug 20, 2015.

Frankly, as you may remember, I'm trying to draw the people out. Have been curious all the while about why they keep posting here. Certainly had no expectations that they wrote the text that appeared with that dodgy shading. And OT, you forgot the rule about when the second post is just a regurgitation of the same 1st-post plagiarism.

Variety is sometimes more interesting than same old same old, which is one problem on this site. Call me quirky, but I like different...

 

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Reply by outthere, Aug 20, 2015.

Variety or varietal... ;-)

 

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Reply by EMark, Aug 20, 2015.

Variety or varietal

Ooh, ooh.  Call on me.  Call on me.  I know that one.  GregT taught me.

A variety is a grape.  A varietal is a wine.

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Reply by Really Big Al, Aug 20, 2015.

Based on the initial post, I just put all our retirement savings into wine stocks.  Sure it's risky but hey - live and learn....

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Reply by GregT, Aug 20, 2015.

D - I agree with you in principle. But these guys, whoever they are, never do any follow-up. They simply send out the spam and I kinda doubt that their spam robot even knows where the stuff is ending up. It's kind of interesting in that they misfire so completely, but responding to them is kind of like responding to the recorded phone calls that tell me it's time to clean the chimney that I don't even have.

 

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Reply by dvogler, Aug 20, 2015.

and who in Vietnam actually uses the term "whilst"? 

Good grief.

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Reply by GregT, Aug 20, 2015.

Google translate?

But it's a cool word isn't it? I think I'm going to incorporate it into my every day speech whilst I figure out what to open . . .

Oh it's a cheap Picpoul. No need for the expensive verbiage. Maybe with something more appropriate.

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Reply by dvogler, Aug 20, 2015.

Brits use it.  Like "anti-clockwise" and "side by each" (instead of side by side).

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Reply by Richard Foxall, Aug 25, 2015.

Side by each is also a phrase used in Woonsocket, RI, by French Canadians who settled there.  Don't ask how I know.

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Reply by outthere, Aug 25, 2015.

"Side by each is also a phrase used in Woonsocket, RI, by French Canadians who settled there. Don't ask how I know."

Out of all the activity here since your last visit this is what you have for us? Seriously? ;-)

 

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Reply by dvogler, Aug 26, 2015.

Hey Dick, how's the reno going?  No marital dischord yet? 

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Reply by dmcker, Aug 26, 2015.

"Side by each is also a phrase used in Woonsocket, RI, by French Canadians who settled there. Don't ask how I know."

Out of all the activity here since your last visit this is what you have for us? Seriously? ;-)

 

Frankly I found it one of Fox's more intriguing comments. Ever.  ;-)

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Reply by GregT, Aug 26, 2015.

Indeed. It's William-like in its randomness.

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Reply by dvogler, Aug 26, 2015.

Hahaha Greg, I was going to say that!! 

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Reply by canhthongxanhtq, Sep 19, 2015.

Investing in wine is by no means a new phenomenon. Many years before fine wine became truly global in the mid-1990s, wily buyers would often buy more than they intended to drink, selling the excess at a later date to fund new purchases.

(chung cư bright city)

In today’s market, as the global demand and consumption of the World’s finest wines increases, opportunity exists to build a collection of wines to provide a financial return over the longer term.

 

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Reply by outthere, Sep 19, 2015.

Yum!

 

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