Reasons Why You Should Invest In Fine Wine
The rise of global wealth, particulary in Asia, Russia and other emerging parts of the world, combined with the increasing awareness about wine, has spawned an unprecedented demand for investment-grade wines. Due to the unique properties of these investment-worthy wines, the world has entered an era where continually decreasing supply meets continually incressing demand for the relatively limited supply of the world’s greatest wines. Where this sort of supply-demand dynamic emerges, an investment opportunity.
- Supply is limited due to the classification system enacted in Bordeaux in 1855 which limits the top chateaux from increasing their vineyards with top terroir.
- Top chateaux sell their wines in tranches, increasing their prices month-by-month, year-by-year.
- Global demand is rising as increasing numbers of collectors (Europe, USA, Russia, Middle East and Asia) seek to buy and consume these wines.
- Top Bordeaux wines have a lifespan of 30 to 100+ yrs. Over time, consumption cuts down on available supply. This demand and supply imbalance results in escalating prices.
- Moreover, the largest, most liquid secondary wine market in the world is in Bordeaux wines, with prices determined by auction houses, chateaux and wine trading houses.
- The ratings given by wine journalists and experts such as Robert Parker Jr. influence demand and prices.
- And to top it off, there is the international social prestige of Bordeaux wines.

