The prices on Bordeaux 2005s are being reduced
around the world. The buyers are trading down in response to the
financial crisis. However merchants are advising owners to hold onto
their stock as prices are not going to fall any further.
As suggested by a merchant, there has definitely been a pause with
the 2005 first growths. In September and October months “we saw
bottle sales far more than case sales”. A chairman of a retailer
commented that “Prices have not yet had time to adjust to the market
conditions, and we anticipate prices will go down”.
In Bordeaux, the prices on the 2005 vintage of all classified
growths have slid by up to 20%. First growth Château Latour 2005 and
fifth growth Château Batailley 2005, for example, have both seen
recent reductions of 12%. Although older vintages particularly the
2000s are still looking robust and are increasing. This suggest
bargains for buyers and potential investors, as merchants avoid
holding onto inventory.
A négociant advised that “Everyone in the wine industry is trying to
get rid of stock”. The prices are coming down because things are
being bought to order. It is noted that the buyer's market is more
choosey and buyers are looking for the best price whether it is in
Bordeaux or the rest of the world.
In London, the Fine Wine Index plummeted 12.4% in October, with 2005
first growths badly affected. The Château Lafite-Rothschild 2005
fell 24% during the month. However figures for November indicate the
index is stabilizing again and prices appear to be stabilising.
A sales director said “the 2005 first growth prices fell 20-25% in
October, with négociants cashing in on the surge in their value
since their release.
The reason why the 2005s are taking a pounding is that it's the only
vintage with any stock”.
'There's a bit less trading going on and people just seem to be a
little bit less worried,' he said.
However it is suggested that we've got to the point where prices
won't drop much more. It is not recommended to anybody to sell their
2005s as the prices ill start to creap up.