Wine Investment - A truly liquid asset

Which wines should be considered?

As a general rule of thumb, it is generally conscidered that investment wines should posses all or most of the following attributes:

• An instantly recognisable label with an established record of both quality
• Be from a good to great vintage which has been widely rated by leading critics
• Have the ability to age and improve as it matures over a long period of time
• Have a history of consistently strong upward price growth

With the above criteria in mind, the following regions are areas of special focus when selecting potential investment wines:

Bordeaux

The region which has enjoyed the lion's share of attention (90%) in recent years on account of interest in the annual en primeur or futures market. First growths offer the best opportunities, however there is a spectrum of high quality wines which are of interest to buyers on account of their ageing potential. With the exception of d'Yquem, Sauterns are not normally considered as blue-chip wines with a large investment potential.

Burgundy

The supply of fine burgundy is tighter than that of bordeaux, and more fragmented. As a consequence wines appear less frequently at auction. A small number of domaines have achieved notoriety and should be considered subject to availability.

Port

Owing to its unparalled longevity, vintage port is a prime candidate for any cellar portfolio. Vintages are 'declared' only in the best years and, as with bordeaux, 'first division' wines tend to attract the greatest interest. The market for mature port has proved more volatile in the last decade than for other regions and advice should be sought in identifying the most suitable wines.

Rhône

Not traditionally seen as a region for investment, however the recent surge in popularity has led buyers to take a greater interest in the longest-living wines. Top level Hermitage, Côte-Rôtie and Châteauneuf-du-Pape fall into this category.

Italy

As with the wines of the Rhône, Italy has recently come into the spotlight. The star wines of Tuscany and Piemonte are scarce relative to consumer demand, and growing global awareness has led to significant market interest.

Australia

Much Australian wine is produced with early consumption in mind, however the pack is spreading out and the leaders offer surprising cellar potential. Careful attention to vintage quality is likely to identify those wines with the greatest potential.