MARKET HISTORY

Wine investment is older than the stock market and has outperformed most other market during the last 25 years. The Bordeaux market has proven to be stable and low risk when experts have compared it to modern investments.

Out of the massive 4000 choices of stock in the Bordeaux market, you will find that only 50 are what you could call ‘investment wines’. Going back over 200 years you can find records proving consistency and favouritism in the market. Throughout this time, the wine market has proven to be one of the most stable, unaffected by any forms or problems in society.

A little correlation from a vastly affected economy still has not stopped the powerful investment area of wine.

The French Bordeaux accounts for 93% of everything in the Fine Wine Index – a wine version of the FTSE!

The portions of trading in the investment market (Fine Wine Index) are on average:

90%    French Bordeaux

1.5%   French Burgundy

5%      French Champagne

1%      Rhone

1%      Italian

1.5%  Australian

The current Fine Wine Index was started in 1982, and can be traded on Bloomberg systems, by banks and is commonly used for hedge funds and private investment data and trading. Cult Wines Ltd, of Richmond, uses the Fine Wine Index to pick out short term strategies on back vintages. Mr Oliver Gearing, Managing Director said “This system allows us to calculate our choices and limit risk mathematically and this is becoming a more common event in the market”

Australian and American (new world) is a new market which has been around for 100 years or so in terms of product. The investment track record is young (12 years give or take) but has been quite impressive on a small number of wines. This is a difficult market for beginners to pick out and the proof of a track history is very small so we would advise sticking to the Bordeaux market.

Lafite Rothschild 2009
More Information

Lafite Rothschild 2008
More Information
Pétrus 2009
More Information