The wine market is a funny thing. It is essentially a luxury product and yet millions of bottles are produced each year. A wine might be worth than one 10 years older than it and the price can come down how one person thinks it taste. One thing is certain though, there is a lot of money to be made from wine and now is a better time than ever to invest.
Fine wine prices have been rocketing upwards for many years now. As better storage facilities and more advanced manufacturing methods produce higher quality wines, so too does the price people are willing to pay for them go up.Sotherby’s Jame Richie who works as the top wine professional there actually 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. 2009′s January figures showed a decrease in prices of close to 1.2% according to the index that tracks 100 of the top collectable wines, known as Liv-Ex 100. 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.
A bottle of 1978 Montrachet Domaine Romanee-Conti recently sold at auction in Chicago for just under $4,000. The price of $23,929 was only a few years back at Sotherby’s for the same bottle of wine. 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.The lowest point in that the market will face is predicted to be somewhere towards the end of the year. It should then be able to start gaining some speed again. Tableware and drinking accessories are expected to improve as well.
Joss Fowler, a wine investment expert from Berry Bros & Rudd has some tips for getting the best return. A Red Bordeaux is a pretty sound bet according to him, mainly because it very rarely ages badly. On top of this, make sure you go for the top wines you can get for your money and always get the best vintage. Stick to this adage and you’ll be filling up your wine racks before too long.
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Posted under Wine
This post was written by wine on February 24, 2010
