The finest Bordeaux vintages are notable investment-grade wines

by May 11, 2020News, Wine Trading Academy0 comments

Bordeaux fine wines are known around the world for their quality, but are great investment assets too. (Frame by Julien Miquel)Bordeaux fine wines are known around the world for their quality, but are great investment assets too. (Frame by Julien Miquel)

Bordeaux fine wines are known around the world for their quality, but are great investment assets too. (Frame by Julien Miquel)

(Sergey Glekov

Senior financial advisor)

Having a long and illustrious winemaking history, Bordeaux does not need a long introduction.

Bordeaux is one of the most famous, prestigious and prolific wine regions in the world. It is no surprise that Bordeaux is currently home to the largest proportion of investment-grade wines.

Fine wine prices are typically not very volatile. However, they still can be affected by a number of factors.

The purpose of this article is to examine a long-term price evolution of several most prolific fine wines from Bordeaux.

Julien Miquel’s four-part series on Bordeaux, with text and videos.


The Lafite Spirit: our Wine Club offers from Domaines Barons de Rothschild (Lafite)

 


Recipes to pair with the latest Alti Wine Club offers from Bordeaux and Tuscany

 


The finest Bordeaux vintages are notable investment-grade wines

 


Graves, Canon-Fronsac, second wines and other collectible Bordeaux wines

 


What you need to know about Sauternes – Bordeaux Sweet Wines and 1855 Châteaux

 


The Finest Wines from Bordeaux, Pt. 2 - Left Bank, Bordeaux 1855 Classified Chateaux

 


Saint-Émilion & Pomerol - The Finest Wines from Bordeaux, Pt. 1

 

The first peer group includes four Bordeaux wines of 1982:

  • 1982 Chateau Lafite Rothschild, Pauillac

  • 1982 Petrus, Pomerol

  • 1982 Le Pin, Pomerol

  • 1982 Chateau Latour, Pauillac

1982 was an outstanding wine vintage that produced some of the most complex profound Bordeaux wines.

Price statistics for the top end Bordeaux vintages are available since 1995. The data for 1995-2017 comes from the FINE Auction Index, a composite of average prices for wines sold at commercial auctions in 20 countries. The 2020 prices are retail prices collected from wine-searcher.com.

Exhibit #1

Price of Bordeaux wines peer group, vintage of 1982

glekov bordeaux 1.jpgglekov bordeaux 1.jpg

Exhibit #2

Price dynamics of Bordeaux wines peer group, vintage of 1982

glekov bordeaux 2.jpgglekov bordeaux 2.jpg

A price of 1982 Petrus, Pomerol has increased in almost 5 times since 1995. 1982 Chateau Lafite Rothschild, Pauillac saw its price in almost 13 times higher than 25 years ago.

The second peer group includes three Bordeaux wines of elder vintages:

  • 1959 Chateau Lafite Rothschild, Pauillac

  • 1945 Petrus, Pomerol

  • 1961 Le Pin, Pomerol

Exhibit #3

Price of Bordeaux wines peer group, mixed vintages

glekov bordeaux 3.jpgglekov bordeaux 3.jpg

Exhibit #4

Price dynamics of Bordeaux wines peer group, mixed vintages

glekov bordeaux 4.jpgglekov bordeaux 4.jpg

These vintages have shown more consistent returns. The prices have increased between 6-8 times over the last 25 years.

Over the long term, the demand-supply imbalance is exacerbated by increasing consumption and decreasing availability, and therefore fine wines become only more desirable due to their rarity.

Looking forward?

Whilst Bordeaux is always a good place to look for when searching investment-grade wines, Alti Wine Exchange has launched two outstanding vintages in the past months: Chateau Coutet Cuvée Émeri 2016 and Chateau Mouton Rothschild “Aile d’Argent” 2014 white.

Château Coutet
Château Mouton Rothschild

#block-yui_3_17_2_1_1589187996641_26697 .sqs-gallery-block-grid .sqs-gallery-design-grid { margin-right: -20px; }
#block-yui_3_17_2_1_1589187996641_26697 .sqs-gallery-block-grid .sqs-gallery-design-grid-slide .margin-wrapper { margin-right: 20px; margin-bottom: 20px; }

Both wines still have bottles available for bidding on the platform’s marketplace.

Alti Wine Exchange also offers a perfect selection of fine wines that have all qualities to show outstanding returns in the future.


Read Sergey Glekov’s analyses on fine wine investment.

News


Alti Wine Exchange Indexes in 2020: despite it all, safe and strong returns for fine wine

Fine and rare wines have enjoyed robust performance and low volatility in comparison to markets during Covid, gaining further room in diversified portfolios


Read More →


Introducing our internal index for fine wine investors

Given the reputation of fine wine as an investment asset, we track price performance and potential returns. Meet the Alti Wine Exchange Internal Index.


Read More →


Top 10: the wines with the largest price growth, January-May 2020

In a period marked by covid-19, fine vintages from Portugal, Argentina and the US featured on the Alti Wine Indexes enjoy double-digit figures


Read More →


An investment look at fine wines from Portugal, from century-old fortified wines to Douro blends

From century-old fortified wines to Douro, the last wine frontier in Western Europe offers much still to be explored


Read More →


The finest Bordeaux vintages are notable investment-grade wines

From Pomerol to Pauillac, prolific fine wines make the French region a staple for investors


Read More →


Why invest in fine wines from Tuscany, the most famous Italian wine region

With fantastic climate and winemaking traditions, Tuscan wines offer great age-worthy bottles for investment


Read More →


This grape produces outstanding and age-worthy full-bodied red wines. The best Chilean Syrah is listed on our platform


Read More →


Mosel Riesling: the finest white wines are also exceptional for investment

 

Explore More from Our Blog

Would you bring your child to a winery?

DEAR READER, What a pleasure to be back! I admit it: these mailbags are now my favorite point of the week. Even during the contentious back-and-forth, I always enjoy opening my inbox to see words from you all. “Kind” ones, sometimes—but as you know from last week—I...

Our Sommeliers suggested wine

DEAR READER, I must be honest—I expected many more well wishes after posting that old journal entry. Everyone is modest when they say they don’t want well wishes, and so I expected there would be a few of you who saw through my “plea for privacy”. But, I forgive and I...

Because Life Needs Good and Evil

Black and white. Chaos and order. Sinner. Sinless. Life is a constant search for the happy medium, the yin and the yang. It’s as renowned psychologist Jordan B. Peterson explains, “Order is not enough. You can’t just be stable, and secure, and unchanging, because...

Thank you, Lehman Brothers?

On this day, 13 years ago, the world broke out in a panic when Lehman Brothers filed for Ch. 11 bankruptcy. Still the largest bankruptcy filing in US history, it was the climax of the Great Recession of 2007-2009. Subprime mortgages were to blame, lending money to...

Beer vs Wine, a timeless debate…

DEAR READER, Blah blah blah let’s get right to it! Dear Sommelier Ferdinand, You’ve dropped some hints that you look down on beer. Why is this, Sommelier Ferdinand? You have a growing fanbase—surely, you’re aware the effect that your insults have? And before you...

What would you do if you found an expensive wine in a cellar?

DEAR READER, Never in my life have I been happier to pontificate about wine than at my computer desk. In person is stimulating, sure, but they always talk back at some point. My lovely readers, however, only speak when I like! This internet thing has utility!...

The Beginning and The End.

Alas, the sun has crossed the celestial equator from north to south. Summer is now quite uneasy, shifting into fall in the north, while life is springing into action down south. What a beautiful time of the year! When grapes are cut from the vine to create new wine,...

Ever heard of a wine cocktail?

DEAR READER, I hope some of you learned from the reader letter last week [hyperlink to Week Ten post] and checked your attics! You never know how much wine sits above you, waiting to be uncorked and decanted—on someone else’s dime! Dear Sommelier Ferdinand, I have a...

The Future of Wine

We humans are bold if nothing else. Unlike any other species (that we know of), only we have chosen time and again to go boldly where no other has gone before. This holds especially true to the modern European, the first to really “discover” ignorance. Though they...

Could Mozart Make Your Wine More Complex?

We usually do three things when drinking wine: look at it, smell it and taste it. We activate three of our five senses to understand what’s going on in the glass. I propose we go further by incorporating sound and touch. Surely what we’re listening to while...

What on earth is a ‘Wine Decanter’?

DEAR READER, It’s come to my attention that many of you are ill-informed, misinformed, and frankly, uninformed about how wine is to be consumed. Were I only a wine enthusiast, it would be wholly dispiriting. But—wine is my profession, and I’m obligated to recognize...

“What’s My Next Question?” – Benjamin Kaplan

What’s My Next Question? On a random day like today 11 years ago, a legendary Harvard Law professor and lawyer, Benjamin Kaplan, died at 99 years of age. A rich, marked life that left an impact long after his last breathe. Apart from influencing the likes of Ruth...