There are some oddities that go on in the wine market. It is essentially a luxury product and yet millions of bottles are produced each year.A wine might be worth less than one ten years its junior, and whether a certain wine sells well or not can come down to a few people's personal taste. There is one thing that is certain though and that there is a lot of money floating around in this domain, and there has never been a better time to grab a share.
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, the struggling market currently has lead to a very clear a drop in prices. March 2009 saw a relatively big downturn in prices averaging 1.2 percent according to Liv-Ex 100, the index that tracks the top 100 collectable wines. This is trend that experts expect to continue for while and can in fact be seen throught the wine sector, from wine production to the sales of everyday wine glasses.
A bottle of Montrachet Domaine Romanee-Conti (1978) very recently got picked up at a Chicago auction for $3,500. The price of $23,929 was only a few years back at Sotherby's for the same bottle of wine. 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.Many professionals in the area think that the market wont see and upward rise until at least the end of this year.
Wine investment expert, Joss Fowler has some words of wisdom for doing well. A almost certain bet is going for a Red Bordeaux, he says, because aging this one badly is no easy task for anyone. 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 pretty champagne glasses before too long.
Tags: auction, drink, investing, money, prices, storage, wine