Wine Investment:Guidelines

Recent Blog Posts

‘Back to reality’ say vintners 20/01/2012
Chinese interest in lower ranking chateaux increasing, say negociants 16/01/2012
Acker auction puts Burgundy in focus 13/01/2012
Hong Kong toast of wine world amid global woes 13/01/2012
Red Rises in China 10/01/2012

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Auction News

‘Bordeaux datapoints of the day’ Array, 7/06/2011
‘Napa wine auction yields $7.3 million for charity’ Array, 7/06/2011
‘Ultimate wine collection’ sells at auction for $11.9 million Herald Sun, 4/04/2011

Guidelines

Investing in fine wine is not generally a short-term investment. Although in certain cases very positive returns have been made in just a few years, Provenance expects to recommend a holding term of at least five years. In order to get the best possible returns of all, it is important to follow some widely-held guidelines:

“TOP TIPPLES FOR VINTAGE HUNTERS
• Look for wines at the highest price per case that you can afford, since the very best wines often rise more in percentage terms.
• Buy wines with truly global secondary demand.
Bordeaux is the best example of this.
• Open an account with a bonded warehouse.
• Choose an exit strategy that will not cost too much commission.
• Never confuse investment with drinking. The old adage ‘at least we can drink it’ is not a professional approach even if true…”
Niall Firth, “Fine Wine may help us to beat the credit crunch”, The Daily Mail, August 02 2008
“Wine as an asset class intimidates most people, who mistakenly assume it is a rich man’s game when in actuality it is open to anyone who is prepared to commit a few thousand quid and wait for a few years.”Christopher Silvester, “Opportunities for Vintage Growth”, The Spectator, June 14 2008

Also, although Provenance Fine Wines are not tax advisors we understand major tax benefits do exist, brought about by the status of “wasting chattel” accorded to fine wine by HM Revenue & Customs, thus entitling exemption from capital gains tax. For further clarification on this matter please visit: www.hmrc.gov.uk.

The acquisition and disposal of Wine is not a regulated activity under United Kingdom Financial Services legislation. Accordingly no statutory protection is available to customers. Provenance Fine Wines Ltd. gives no warranty as to the future value of any product purchased from it and the resale value of any product is entirely at the risk of the customer.

Market Movements

Ten best performers

Last month Last 3 months Last 6 months 1m / 3m / 6m

1. Pavillon Rouge (2006) £1244.55 -19%
2. Pavie (1999) £1322.87 -18%

3. Pichon Baron (1985) £1056.59 -18%
4. Leoville Barton (1999) £546.36 -17%

5. Ausone (2006) £6186.71 -12%
6. Lynch Bages (2008) £816.95 -12%

7. Carruades Lafite (1998) £3239.70 -11%
8. Pavillon Rouge (2008) £1204.69 -10%

9. Cheval Blanc (2008) £4066.41 -10%
10. Ducru Beaucaillou (1985) £1308.24 -10%

1. Rauzan Segla (2009) £853.14 +34%
2. DRC, Romanee Conti (1990) £11892.75 +33%

3. Ausone (1997) £4062.33 +31%
4. Ausone (1990) £6110.00 +27%

5. Leoville Barton (2001) £726.88 +27%
6. Petrus (1989) £15762.00 +26%

7. Conseillante (2002) £760.46 +25%
8. Cheval Blanc (1986) £4760.00 +22%

9. DRC, Romanee St Vivant (2002) £771.07 +22%
10. Mission Haut Brion (1988) £2036.20 +21%

1. Pin (2001) £19824.06 +1351%
2. Krug, Brut (1995) £1140.00 +49%

3. Ausone (1997) £4062.33 +48%
4. Cos d'Estournel (1983) £1160.00 +39%

5. Petrus (1988) £16396.00 +32%
6. Rauzan Segla (2009) £853.14 +32%

7. DRC, Richebourg (1998) £786.41 +31%
8. Pavie (1989) £1013.00 +30%

9. Lafleur (1999) £1508.80 +29%
10. Petrus (1994) £14124.00 +28%

Ten worst performers

Last month Last 3 months Last 6 months 1m / 3m / 6m

1. DRC, Romanee St Vivant (1995) £597.43 -22%
2. Latour (2005) £4912.34 -20%

3. Pavillon Rouge (2006) £1244.55 -19%
4. Pichon Baron (1985) £1056.59 -18%

5. Pavie (1999) £1322.87 -18%
6. Leoville Barton (1999) £546.36 -17%

7. Lafite Rothschild (1986) £15519.88 -17%
8. Lafite Rothschild (2006) £5051.49 -17%

9. Mouton Rothschild (2008) £5385.67 -17%
10. Haut Brion (2008) £2021.52 -15%

1. Pin (2004) £3483.13 -42%
2. Dom Perignon (1990) £2635.43 -39%

3. Louis Roederer, Cristal (2002) £1569.43 -33%
4. Dom Perignon (1998) £1080.00 -30%

5. Mission Haut Brion (2007) £821.66 -27%
6. Lafite Rothschild (1995) £3950.00 -26%

7. Lafleur (2001) £1564.44 -26%
8. Margaux (1998) £1825.22 -24%

9. Petit Mouton (2009) £1133.48 -24%
10. DRC, Romanee St Vivant (2006) £637.73 -22%

1. Pin (2004) £3483.13 -50%
2. Lafite Rothschild (1989) £3200.00 -37%

3. Lafite Rothschild (2008) £8586.33 -34%
4. Mouton Rothschild (2008) £5385.67 -34%

5. Lafite Rothschild (2008) £9196.78 -33%
6. DRC, Tache (2005) £15000.00 -33%

7. Mouton Rothschild (2008) £5129.33 -32%
8. Pavillon Rouge (2005) £1294.25 -31%

9. Petit Mouton (2008) £576.26 -29%
10. Margaux (1996) £5751.69 -28%

Prices shown are today's Current Average List Price in GBP for a Standard In Bond case of 12x75cl OWC (unless stated otherwise) and are presented under license from Liv-ex.com

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