Posted by: premiercruadvisors | January 28, 2008

THE THREE MAIN FACTORS FOR GOOD FINE WINE INVESTMENTS

WEATHER

Grapes, like all other fruits depend on ideal weather conditions to produce a good, sweet, juicy crop. France, like England has erratic and unpredictable weather. A truly magnificent wine can only be produced in ideal weather conditions. From the time the vine starts to bud in late April to the harvest in September or October, every drop of rain, every hour of sunshine and every degree of heat has its eventual affect on the quality and character of the wine. Hence the special uniqueness of each Vintage……………….

APPLICATION CONTOLEE

If a wine bottle label carries this title it indicates the wine to which it is applied, has been produced under the strict supervision of the Institut D’Appellations d’Origine, and has been made from grapes grown in a specific area of France.
The first Appellation was set up in 1936 in Châteauneuf-du-Pape. Since then the system has been extended throughout France and now covers some 30% of total wine production, including the wines made in the west…………………

AGE & QUALITY

The new wine held in the cask at the chateau is called En Primeur or Wine Futures: The vintage is the year of harvest, but is not released for sale until the following spring. We purchase this as an investment each spring, subject to a good vintage, and singling out the best producing chateaux each year. Most buyers have a major drawback when buying in a great vintage – that is if they can. Many wine merchants will only sell the best wines if the buyer purchases the equivalent value of lesser ‘drinking’ wine. We have been able to secure allocations of the wines from the Chateaux we choose without any obligation to buy the cheaper wines as well. We will not buy vintages that are not of a high enough quality, unlike wine merchants we are not beholden to buy every year regardless of how good the wines are…………………….

Posted by: premiercruadvisors | January 28, 2008

Liquid Assets As Alternative investment

The factors that have made Fine Wine such an interesting investment opportunity have been, and will continue to be, its longevity and place in history. Fine wines have always been considered as one of life’s luxuries. But, with a proven track record of providing consistent, comparatively low risk, high yielding returns; it’s really a case of mixing pleasure with profit.

We will proactively seek to find optimum exit strategies to ensure the underlying performance of the investment, by way of realised gains in Fine Wine values.

 Wines will generally be held for the medium to longer term which reflects the optimum term for investment into this asset class reflecting historical market trends. As advisers we invest on behalf of our clients across the spectrum of old and new vintages, the need for this is demonstrated clearly by Figure 1. By buying wines that are mature enough for consumption, where the supply is diminishing quickly, whilst demand increases as the quality of the wine continues to improve, and mixing those with the younger vintages which are in great demand and regularly traded, we can build balanced portfolios of the worlds greatest wines

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