Vintage Values

With the stock markets in turmoil and the value of various currencies going through the roof before dropping through the floor, it’s good to know that there’s still one commodity on which we can rely. Today wine is still a solid investment choice for many experts; despite a recent drop in prices, bottles of the most desirable wines (known as liquid gold) have retained their value through the toughest of international financial crises.

Wine auctions are prestigious events, taking place in sophisticated surroundings with as many as 1,000 lots on offer, some valued at tens of thousands of dollars. During Christies’ last auction a case of Chateau Mouton Rothschild 1982 Bordeaux sold for only $4,500, half its estimated value, yet the day’s tally still amounted to more than $4,000,000.

The old connoisseur’s saying, “provenance is everything”, is still true today. A good wine is primarily the sum of a great vineyard, but the location, method and duration of storage also plays a part. The 1816 Sauternes Château d’Yquem, for example, is taken directly from the cellars of the French château where it was originally produced, ensuring a top quality wine. Several cases were recently bought for $49,000 at an auction held by Zachys’, a leading New York wine merchant, by an anonymous bidder who had planned to spend only $30,000.

These days technology also plays a part, with international bidders attending online or e-auctions. These permit buyers to bid on items for a period of anything from two weeks to three months, monitoring bids and automatically counter-bidding up to a pre-set limit. In contrast to private auctions, which are usually accessible by invitation only, e-bidding allows participants – from California to China – to bid on the same items.  However, an end-of-auction dinner is often organised, as well as a party for the highest bidder.

From 24th July to 11th August 2009, the Munich Wine Company will be holding an e-auction, so any interested potential purchasers can see the process for themselves.

New post on at Tuesday, 7 July, 2009, 10:28 am and is archived in International News, Lifestyle. Subscribe to answers with RSS 2.0 feed. Both comments and pings are currently closed.