Wine Collecting Is One Of The Best Financial Investments You Can Make Right Now
Posted on 01. Mar, 2010 by Global in Uncategorized
There are some oddities that go on in the wine market. It is essentially a luxury product and yet millions of bottles are produced each year.One wine may be 10 times as expensive as its cousin and wine popularity can be up and down like a roller-coaster. One thing is true though, there are a lot of people making a lot of money in the wine game and now is a pretty good time to get involved.
Fine wine prices have been rocketing upwards for many years now. As more refined production techniques and better storage capabilities allow for high class wines, so the prices for those wines continues to increase. 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. This year in Jan there was a drop in prices of around 1.2 percent according to Liv-Ex 100, the index that tracks the top 100 collectable 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 everyday shot glasses.
Recently, at a Chicago auction a bottle of Montrachet Domaine Romanee-Cont (1978) went for $3,783. That same bottle went up for sale at Sotheby’s a couple of years back for $23,929. This sharp decline means that if you’ve ever wanted to start your own wine collection, either for your own consumption or as an investment, it will soon be the right time. 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.
Here are some key pieces of advice from Joss Fowler, wine investment professional from Berry Bros & Rudd. He says that the best bet is still Red Bordeaux as this always ages well. 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 before too long.
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