The market for wine in a strange one. 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.
The cost of picking up a good bottle has been rising quite quickly over the last few decades. 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.The wine expert as Sotherby’s, Jamie Richie actually commented that “Prices had risen to nearly unsustainable levels last April”. However, now that the recession is upon us, the prices of these exclusive wines are coming within reaching distance. 2009’s January figures showed a decrease in prices of close to 1.2% according to the index that tracks 100 of the top collectible 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 standard shot glasses.
Recently, at a Chicago auction a bottle of Montrachet Domaine Romanee-Cont (1978) went for $3,783. That same bottle went up for sale at Sotheby’s a couple of years back for $23,929. This sudden drop basically means that if you’ve ever had an urge to start collection yourself, either as an investment or just a hobby, the best deals are just around the corner. Experts think that the market will be at its lowest point by the end of the year, after which it will start to pick up again slowly. Tableware and drinking accessories are expected to improve as well.
Wine investment expert, Joss Fowler has some words of wisdom for doing well. He recommends that a very good bet is, and always has been, a Red Bordeaux as they age beautifully. Also, play it safe and get the best wines your money can buy from the best vintages. Stay true to this rule and you’ll be filling up your wine racks sooner than you think.
