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DUNBAR FINE WINE / June 2003: 2000, 2001 and 2002 Bordeaux's...
The FT100 is currently at 4113 and the Dow Jones is 8414 exhibiting a small recovery of 5% and 7% respectively over the last few months. Now that the conflict in Iraq is over, the rise in the UK and US markets are a reflection of relief that the financial world feels. However, a note of caution should be noted as the G7 countries reflect on the state of their respective economies and I doubt whether there will be much cause for good humour. The falling or at best stagnating growth numbers and low interest rates which on one hand is good for company borrowing but bad in that in that they cannot be reduced much further to stimulate demand in the domestic markets. Japan
is an excellent example of this phenomenon, where their domestic
interest rates are virtually zero, so the authorities have lost
a valuable economic tool in order to reflate an economy!
The UK wine market has been active with Bordeaux 2000, 2001 and 2002. Stocks of the 2000's are physically appearing in the market but demand is so strong for the very best wines. Tertre Roteboeuf 2000 was at 1250 GBP when I last wrote, well that is history and the current price is more like 1700 GBP and rising to 2200 GBP out of one Bordeaux negociant. There is good demand for Mouton 2000 at around 2450 GBP but Latour 2000 and Lafite 2000 are generally well over 3000 GBP and rising. Cheval Blanc 2000 is 4000 GBP, if you can find it! Lynch Bages 2000 is at 660+ GBP and Pavie 2000 at around 1700 GBP. Château Hosanna 2001 has been selling well at around the 800 GBP mark and that price is very much on the rise, one bargain that I found recently was Haut Brion 2001 at 840 GBP but its price is normally around the 950 GBP level. I have seen some serious interest in Pavie 2001, which Robert Parker Jnr. rates very highly indeed. The Bordeaux 2002 vintage has been selling well at the very top end and is now in short supply, so prices are rising. I suspect that this is because the tranche's issued by the Bordeaux trade are so small and demand exceeds supply, thereby fuelling higher prices - only time will tell. The world will hold its breath until Robert Parker's assessment on the 2002 Bordeaux vintage, presumably later this year. The one wine that has recently kicked up an absolute storm is Penfolds Grange 1998. Robert Parker Jnr gave it 99/100, the very same score as The Wine Spectator and as they say the rest is history. I was told that when the wine was released in Australia in early May apparently in 3 bottle lots, the wine sold out in 2 hours. I have seen this wine in the London markets at 1220 GBP, 1440 GBP, 1550 GBP and now in some cases touching 1900 GBP. Apparently the wine costs well over 3500 GBP in Australian markets so I expect some may just be making its way back to its country of origin. Demand for Grange has been frenetic at times, little wonder as it is said to be the best Grange that has been produced since 1986 when it was possible to buy a bottle of Grange or Hill of Grace for around 20 GBP - happy days! I am now of the opinion that there are a very few wines from the Bordeaux 2001 vintage that have real investment prospects for the future, if you are interested then please call for advice…. The 2001 Rhones have come onto the market and give the informed purchaser a great opportunity to stock up on the last of the marvellous run of vintages 1998-2001. There were some fabulous wines made in 2001 and it would be an absolute shame not to have a few in ones cellar. Take a tip, Victoria Wine and Threshers (UK wine stores) have a very tasty number on their shelves called: Chateau
du Grand Prebois 1998 £7.50 There are still bargains in the market as some people have had to sell stock due to the drop in the financial markets and the requirement to realise assets, but these tend to be short lived as people like me snap them up for their clients. People who have purchased top class, investment quality wine during the past few years should feel very secure, in that the rest of the world for some time to come, are going to have to compete for what is out there already. If you purchased any of the top 33 wines from Bordeaux 2000, then rest assured that you have the equivalent of LIQUID GOLD in your portfolio. I am increasingly contacted by people who have paid an inflated price for their wine, I would advise that if you are offered a deal, please check first from a reputable source that: 1.
The wine you are being offered is from a property
that has a record of making great wine. We all know what a washing machine or a can of baked beans costs, but the vast majority of the drinking or investing public do not know that Chateau Cheval Blanc 1996 is worth about £1000 (trade price) and absolutely not the £3500 that one distressed investor was charged or that Chateau Domaine de Peyrelongue, St. Emilion Grand Cru 1994 and Chateau Grand Faurie, St. Emilion Grand Cru 1994 are worth about £100 per case and not the £1000 charged. If you feel that you may have a similar problem, please do not hesitate in contacting me. As always take professional advice from people with a high degree of transparency.
If you are looking for Fine Wine that is ready to drink, please consider the wines featured on the recommendations page, where you will be able to order quality wine at terrific prices supplied by some of the UK's finest wine merchants. To get the project off the ground I have chosen 5 wines that I think are great value and these are Dunbar Fine Wines Recommendations of the Month. The list may change during the month if a particular wine has sold out, or if there was little quantity to begin with. I want to see wine that I would want to drink, at a price that I think was remarkable value on the page, nothing less will do! You will be able to order quickly and safely. Let me know what you think and what you would like to see. Whether you are a wine lover, an investor or indeed a bit of both - please do not delay. Interest rates are down and set to remain at historically low levels for the foreseeable future. Fine wine as part of a properly balanced portfolio of investment can be capable of offsetting troubled times in other financial areas, and the rewards are absolutely tax-free. Call in to our website at http://dunbarfinewine.co.uk/investment.html to see for yourself how fine wine has historically been a first-class and consistent investment, when the wine is sourced from reliable suppliers and not some of the cowboys that have given our business problems in the past. STOP PRESS: Click here for this month's selection of fine wines for purchase
If you wish to discuss the acquisition of wine, please complete
the form in the Contact section.
December
2001 Newsletter - click here |
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