Don't put all of your eggs in one basket; this is the first rule of investing for every investor, even if you are a complete novice. Setting up a cellar might be an excellent way to broaden your horizons. The resale of certain bottles may result in a significant monetary gain for the owner(s). Two auction house professionals provide their explanations.
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| [Invest in wine] |
They can not only please your taste, but they can also please your pocketbook. A few bottles of wine may prove to be a worthwhile investment over the long term, if handled properly. Estate, vintage, and conservation are all options. Before making a decision, get advice from industry people with relevant experience.
Which bottles are likely to increase in value?
As Pablo Huarte, European head of the Wines section of the Christie's auction house, points out, "Bottles on which it is feasible to generate a monetary gain on resale constitute a minuscule fraction of the wine industry."
"Most wines are intended to be consumed young," explains the rationale. They lose their worth as a result of their inability to withstand the test of time. Other wines, such as those classified as "wines for lying down," on the other hand, improve with age... as a result of which their market worth increases. These are the ones that collectors are most interested in.
What are the most sought after wines?
Wines from Burgundy vineyards are especially well-known all over the globe and are particularly popular in the United States. The most sought-after domains include: Romanée-Conti, Leroy, Georges Roumier, Coche Dury, and many more... And this is true in both red and white. Other highly regarded wines include the grands crus of Bordeaux (Lafite-Rothschild, Mouton-Rothschild, Latour, Margaux, Haut-Brion, Angélus, Petrus, Yquem, Ausone, Cheval Blanc, etc.) and, to a lesser degree, drinks from the Rhône (with the exception of Château Rayas).
According to Pablo Huarte, some wines from the Loire (such as Clos Rougeard) and the Jura (such as Pierre Overnoy) are "becoming more sought after." In the last 10 years, we have said very little about the wines of these areas, for reasons that remain private.
Champagne looks to be a popular option for financial investments as well. In the opinion of the Christie's specialist, "certain pieces are becoming more sought after by collectors, and their resale values have increased dramatically."
What about wines from other countries? They account for a minuscule proportion of the wines most sought after by French purchasers. "Some bottles from Italy, Spain, Portugal, the United States, Australia, and South Africa are still performing well," says Luc Dabadie, a wine specialist at Artcurial auctions and a member of the auction house's wine committee.
How much should you invest to hope to make a capital gain?
The two specialists advise purchasing uncommon bottles (because of their limited production and/or their age) whose quality is acknowledged by both amateurs and professionals in order to increase the likelihood of making a cash gain.
In case the latter are too costly to purchase, another alternative is to turn to Bordeaux wines during sales known as "en primeur." It is possible to pre-order wines via this system put up by the Bordeaux estates, with some bottles costing as little as a few tens of euros per bottle. "The Bordeaux grands crus are a solid option," Luc Dabadie says of his recommendations. Furthermore, they are more readily available than those in Burgundy, for which you must first register on a waiting list and then wait for years. According to him, we might expect to be able to buy excellent bottles for less than thirty euros each.
Is purchasing a bottle from a reputed estate, regardless of where it is produced, inevitably associated with increased resale value, or vice versa? No. It's essential to get really high-end cuvées from prominent appellations, as well as excellent vintages that improve with age, according to Pablo Huarte.
Another option is to place bets on locations that are not (yet) highly sought after. "By meeting winegrowers, attending wine fairs, and participating in tastings, you might discover a really fine estate whose bottles have the potential to appreciate in value," explains Luc Dabadie. Pablo Huarte concurs, saying that "some wines unexpectedly grab the attention of enthusiasts and collectors, resulting in an explosion in their value in a short period of time." He is particularly fond of some bottles of Château Rayas, Châteauneuf-du-Pape, which he has in his collection.
It takes time to identify the regions that are most likely to be breached. A specialist in Artcurial proposes that you study specialized journals and guides: (Guide to Bettane and Desseauve wines, the magazine Le Rouge et le Blanc, the guide and magazine to the Wines of France, etc.). There are a plethora of readings that will help you to get a sense of the current trends and winegrowers who are establishing a name for themselves.
What added value to expect?
"When you invest in wine, you have no way of knowing what its resale value will be years later," says Luc Dabadie.
"Some Bordeaux wines acquired en primeur, which resale twice as much, or even more, 10 years after purchase, are among the bottles that may enjoy excellent growth." He is specifically thinking about Château Grand-Puy-Lacoste bottles, which were purchased en primeur for 40 euros apiece in 2000 and resold by Artcurial in June 2020 for around 124 euros, a threefold increase in value.
Where to buy your wine ?
The alternatives are numerous: from a producer, a wine merchant, on specialist platforms (such as Liv-ex), during auctions, or on websites that allow people to buy and sell directly to one another. However, when it comes to the latter, be cautious of counterfeits and the preservation of the bottle.
Are there some formats that are more popular than others in terms of popularity? The standard bottle size is 75 ml. If you want to preserve the bottle for an extended period of time, the magnum (with a size of one and a half liters) might be an excellent choice, according to winemaker Luc Dabadie. This style preserves the quality of the wine, and the bottles are easy to pour.
How to conserve wine ?
Purchasing wine is a long-term financial commitment. "We're talking about investments that will last 10, 15, or even 20 years," Luc Dabadie says. And, throughout the years, it is essential to maintain proper conditions in order to prevent deterioration: a humidity rate of at least 70%, a steady temperature of roughly 12°C, and storage in a dark, non-vibrational environment. It is possible to store the bottles in either a traditional cellar or an electric wine cabinet. Individuals who are unable to store their belongings at home might hire storage space from specialist service companies (La Cave, Cavissima, iCave, etc.).
In the event that your wine has not been properly maintained over time, specialists in the industry will be able to detect this without even having to open the bottle. We will notice that the level of the wine has fallen and that its color has altered if the cellar is dry, according to Luc Dabadie. Additionally, professionals are watchful for any signs of wear on the label. "Those that are in pristine condition after years of conservation serve as an alarm, while those that have been damaged by humidity serve as a reassuring reminder," he explains.
Another suggestion is to maintain the original wooden container, which will assist to raise the value of any additional items. The traditional cellar should not be placed on the floor or against a wall, according to the author. Humidity has the potential to destroy the wood. It is preferable to raise it. »
Are you ready to take the plunge? One last piece of advise for the road ahead: vary your cellar in terms of estates and vintages, as well as in terms of styles.
Source: LesEchos