About Fine Wine CollectingEFWines brings you a diverse and exciting portfolio of Europe's most collectable fine wines
Fine Wine is a great way to add diversity to your portfolio. In recent times there has been an explosion in the popularity of fine wine collecting demonstrating the long-term within the wine market.
Unlike the property and stock markets, which have proven to be highly volatile, the wine market has outperformed most other financial indices over the past two decades, as it is much less susceptible to economic change or interest rates. One great advantage of wine over other kinds of collectables is that the available supply of the premium grade vintages is strictly limited.
“The niche wine market continues to look like a safe haven compared with property, fixed deposits or equities. The dynamics of the wine market are about as recession-proof as anything.” FT report – Wine Investment 2008.
Fine wine is classed as a “wasting asset” so there are interesting Capital Gains and Income Tax advantages we would like to discuss with you. All wines are kept “in bond”, so VAT or duty will not be paid on it either!
Growth potential is high when collecting wine, providing the right vintages are chosen. Just like any high value purchase, expert advice is essential. As a leading wine merchant and specialists in Bordeaux fine wine, including En primeur, the EFWines team of experts are on hand to offer advice and support to ensure that you get the best start to your wine portfolio.
What makes a wine collection?
There are thousands of wines produced in the Bordeaux region, however only a relatively small number can be considered collectable grade.
The main key factors to consider when it comes to collecting wine are as follows:
Points: Points, specifically Robert Parker’s (a renowned wine critic who can influence wine prices by giving it a high score) are the main way of assessing whether a wine is of an suitable grade. You can read more about him at ‘The Wine Advocate - erobertparker.com’.
At EFW we look for wines that have been rated 90 points out of a possible 100, and as you would expect the 98-100 point wines are regarded the very best.
Vintage: The vintage of a wine will affect the price of it, such as the recent 2009 vintage described by Robert Parker as the greatest vintage ever tasted in Bordeaux since 1982. This statement automatically puts the demand and price up for the 2009 vintage. To read further market news on this subject click here.
Brand: Fine wine is often a status purchase; in the same way that no one buys a Patek Phillipe watch because they need an extra level of precision in time-keeping, or a Louis Vuitton handbag because it’s better at holding personal items.
It goes without saying that no luxury product will survive without being of the highest quality, but once a brand achieves recognition as representing the best that money can buy then the price is not the main consideration.
This is the level of eminence attained by certain vineyards in Bordeaux and the Burgundy region. Château Lafite, Mouton Rothschild and Château Margaux, together with Le Pin, are amongst examples of wine brands in the Bordeaux region that we might expect anyone to recognize, regardless of their interest in wine. To read more on our top twenty collectable wines click here.
Availability: There are a number of factors that ensure a limited supply of the best wines, not least the production restrictions built into the Bordeaux wine classification system, e.g. a vineyard can only produce a maximum of 177 cases per acre of their premium labelled wine, regardless of the size of the harvest. There are also natural restrictions; some of the vineyards are quite small; wine makers pursuing quality will take great care in extracting the best grade of juice (think Extra Virgin olive oil, first pressing); and the most intense flavours come from the smallest berries (i.e. the lowest yield).
This creates an opportunity as top vintages have become harder to acquire, and this is due in part to a huge increase in affluence, particularly in the Far East. A lot more attention is now turned towards châteaux outside the first growths that consistently produce superlative wines.
Indeed, such is the gulf between the established labels and the vineyards that need to succeed entirely on merit that there is potential for substantial price increases. This is an opportunity for the shrewd buyer to capitalize on the consequent recognition and increased interest, and our portfolio recommendations over the last year have taken this in to account.
Read FAQ’s on wine collecting by clicking here.
For information on the purchasing process with EFWines, click here.
For more info we advise that you take a minute to read our booklet ‘Some golden rules for fine wine collecting’ here.
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