Wine Auctions - Wine News

One bottle of Burgundy Wine „Henri Jayer Vosne Romanee Cros Parantoux 1990 750 ml“ was offered at a wine auction in New York. The high bidder paid, converted in Euros, the price of 253 Euros plus fees. During the same auctions also one bottle of „Pape Clement 1990 750ml.“ was auctioned. Therefor the high bidder paid the price of 220 Euros plus fees.

Three bottles „Henri Jayer Vosne Romanee Cros Parantoux 1990 750 ml“were offered at an auction in London. The high bidder paid the price of 14076 Euros for a bottle plus fees. This represents an increase of value from 5500% in 16 years. The bottle of Bordeaux „Pape Clement 1990 750ml“was also auctioned, but here the buyer paid only 85€ plus fees. That represents depreciation in value of over 60 % in 16 years. This simple example shows the extreme fluctuations in the rare and fine wine business and demonstrates the vagaries and risks of wine investment in general.

Everyone who considers wine as a kind of investment should have done his „homework“before investing, like for any other investments, too. Since the 70s the golden rule for wine investment has been applied: Buy on case of Bordeaux, as possible one of the leading and famous Chateaus 1-5 Cru and stock it for 4-5 years. After the time you keep 2 bottles for you for your personal use and sell the rest of the case at current market price. This rule was valid up to the vintage 2003.Than the strategy of the wine producers has been changed in addition changes in the market, Price settings after scoring, high valuations and higher feature prices from chateau. Wine is topic fulfilled with passion and emotion, something that has to do with enjoyment. We beg your pardon for the divagation, but it has its reason and the reader will be able to relate it after reading everything.

At best an extreme sensual experience, voyage, search, play with senses. The more your senses will be trained and grounded the more might be the enjoyment, longer the moment , the „ Benefit“ of your voyage through the evolution of the wine, sometimes over hours and the discovery of something nearly alive.

The value of wine is being determinate day by day and depends on different factors and the opinion of individuals. The more people are interested in limited products and are able to buy these, the higher is the probability of rising prices. The simple law of supply and demand. The majority of people do not separate fast and easily from wines, with which they established a positive and emotional rapport. Wine will be collected, collections will be shared with friends, and some brag with the wines collected, people are fascinated by the passion. Wine is an object of cultural value, not only in Europe, but in the meantime all over the world. This makes the determination of wine prices a global affair.

A wine connoisseur, who regards a wine cellar and all these prestige bottles, does in the rarest of cases think about the wine prices at first. A connoisseur, who looks at his bottles in the shelves, sees maybe old friends and therewith occurrences or expectances. A wine enthusiastic is on the search for the next coup, the next extraordinary wine. Like a treasure hunter, he searches through in the stock of wine merchants. And finally everyone is someday occupied by the same questions “How much is the actual price of a wine? and „What price would I pay for?“.

Wine is a piece of culture, not only in Europe, where it is incorporated in the country’s history. Wine is mentioned in the same breath as Music, Arts and Architecture. Like the other themes, the wine world offers interesting stories from mystic wine-grower, beautiful wine-growing areas and wine which seems not to be from this world.

Everyone who invest in wine should know that he/she is acting on specific terrain .Strategies in wine investment are actual still long-term, not short term oriented. The investment periods starts from 5 Years up to more than one generation e.g. the performance of Cheval Blanc 1947 750ml or D’Yquem 1811 750ml.The results of short term oriented investments and speculation have been especially visible by Chateau Lafite and some other wines, which were bought just because of the scoring and deal like conventional investment forms. This example showed in a particular manner, what happened when pure speculation and lack of wine knowledge meet. Investors, who just think of short term return money investment, therefor just consider portfolios diversification, risk hedging and save investments, without topic knowledge, will fail like it is possible in the finance sector or other global investment markets

First of all we would like to thank all investors, who road this entire emotional digression.

Emotionality is also the essential element and topic in this market.– With the main distinction, that in the wine world existence fears and panic selling are not common.

But the avarice is also present!

There is avarice for experience, for possession but in a friendly way. Just few people run into debts to invest in wine.

In wine investment we can discover the impressive machinery of the market, by short term falls of prices, wines won’t be sold.

In 2011 with begin of the Euro crises, some investors started to invest in wine. As expected they placed investment in the famous Bordeaux and shortly after in Burgundy to boost „Domaine Romanee Conti La Romanee 1990 750ml“and Henri Jayer Cross Parantoux 1990 to all time high prices.

Naturally after a short period prices returned to a still remarkable, but normal level.

That gives a wide scope for different interpretations.

It is conceivable, that the owner of the best fine wines, were not in the predicament to sell their wine or simply they did not want to sell them!

Or there is a possibility that most were occupied by the fallen markets around the world that they did not had the time to spend for their wines.

If these supposition is real- what does this it teach us about Wine Market and fine wine prices?

R.F.

*Pictures Lizens Fotolia