18 May Now IS the time to invest in wine
A year ago, the New Zealand Herald posed the question “Is Now The Time To Invest In Wine?”. In talking with several wine specialists in New Zealand, including our team at The Wine Auction Room, the answer was a resounding yes. And this answer holds true today.
At The Wine Auction Room, we’ve noticed local wine auctions are following global trends. Liv-ex is the global fine wine trading platform that tracks fine wine resale prices through its various indices. As measured by the Liv-ex Fine Wine 100 index, wine proved a better investment in recent years than traditional equity markets, such as the Dow Jones or gold. Recent sales through local auction houses have proven the market has softened compared to previous years, making this a great time to purchase well-cellared wines in the secondary market to boost your investment portfolio.
New Zealand offers some tremendous wines worthy of a seat at any international table. With interest tapering, we are now seeing some of the more popular brands such as Stonyridge Larose and Te Mata Coleraine being secured at values ~20% less than paid in 2021. Lesser-known contemporary New Zealand Bordeaux blends, such as Te Motu and Newton Forrest, offer consistently great value for their tremendous quality.
This investment value is not just limited to local wines. We’ve noticed similar trends for international wines – from premier cru to village classes, savvy buyers are collecting wines that will do them proud in years to come.
To help our buyers, we note the cellaring conditions of the wine prior to being consigned to auction, and quality wines from consistent temperature-controlled storage always pique the interest of discerning buyers. Cellaring conditions are one of the key things to look at when buying wines on the secondary market. Look out for wines that have been consistently stored in temperature-controlled conditions on release from the vineyard.
Critic scores are another indicator that can help guide your investment purchases. Scores greater than 95 points (of 100) or 18 points (of 20) are worthy of your attention. Of course, scores of 100 (or 20) are reserved for the finest of wines for their time – keep an eye out for them and be sure to read the tasting notes to understand when the wine will be in its prime. Our upcoming auction is littered with 100-point wines – offering a wonderful investment opportunity for the shrewd buyer.
Of course, depending on when and how these wines were purchased by our vendors, the results still offer a generous return. As with all investments, it can take time to realise the increase in value. Your investment equation can be summed up in three hows…. How you buy, how you store and how long you hold for.
The Wine Auction Room hold regular monthly auctions in a variety of formats. Live/online, virtual/online and fixed-time online only. We publish our catalogue with plenty of time for you to complete your research and cast your bids. Of course, our team are always on hand to provide you with detailed advice. Simply call us and we can talk through your investment aspirations.