How to Invest Series: Wine

17/09/2019     Chiswick Curates, Wine & Spirits


Uncertainty with Brexit and economic recessions forecast in both the UK and US mean that wine investors are turning their attention away from traditional stocks and shares to a more diversified portfolio. In this series, we will be discussing how to invest wisely in Jewellery, Wine, Handbags & Fashion and Watches; what to look out for and what brand names you can trust. Today we will be focussing on how to invest in wine.


Wine has been one of the most profitable investments over the last few years, the best monitor of growth being the Liv-ex index showing the top 1000 wines growing at over 48% over the last five years. Whilst the last year has been pretty flat overall, some sectors like Burgundy and top Italian wines have shown growth at well over 10%.

Burgundy growth has mainly been driven by demand from abroad, China and the Far East. Top Champagne has also been a great performer showing 50% growth in the last five years and continuing an upward trend this year. Therefore, if five years ago you had bought a case of six Dom Perignon 2000 for £650, it would now be worth over £1000.

If you are able to hold on longer, thirty to forty-year-old top Champagnes like Krug, Crystal, Bollinger RD and Dom Perignon in the best vintages fetch up to five hundred pounds a bottle. There is a phenomenal range of great Champagnes in our Wine & Spirits sale on 19th September.

Lot 2. 1 Magnum of Bollinger R.D. 1976, estimate: £1,995 – 2,100 and

Lot 3. One Magnum of Krug 1976, estimate: £1,000 – 1,200 (left to right)



As for Burgundy, the case of Anne Gros Grand Cru Echezeaux 2002 in this week's sale cost £100 a bottle on release, is now worth 50% more, but could be worth £250 a bottle in a few years as the demand for top Burgundy continues, likely because these wines are really quite scarce.

Lot 179. Six Bottles of Domaine A.F. Gros Echezeaux Grand Cru 2002, estimate: £400 – 500 (left to right)



Our wine team here at Chiswick Auctions would however point out three fundamental rules before considering wine as an investment;

    1. Remember wine is a consumable and a perishable. Whilst top wines will last tens or even hundreds of years, they should always be kept very carefully in cool, dark conditions. Always look carefully at the pictures we use for our catalogues and our condition reports.

 

    1. Try to always buy the best in each category and the best vintage, and if possible, in its original case or wooden box.

 

    1. Magnums and large bottles always get a premium, because they are scarce and the wine matures slower and keeps better.



Lot 1. 1 Magnum of Ruinart l’exclusive Non-Vintage Champagne, estimate: £300 – 400

and Lot 32. 6 Bottles of Bollinger R.D. 2002, estimate: £600 – 700 (left to right)



Wine is also for drinking and enjoying with friends, believe it or not, so we suggest you always buy two cases, one as an investment and one to enjoy!

Our next sale will be held on 19th September, 11am. 

For more information, please get in touch with our Head of Department, Sam Hellyer on sam.hellyer@chiswickauctions.co.uk.

 

 

 

 

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