More and more investors are looking for fine wines to invest in. They see them as a stable, profitable option, especially in the wake of the Covid-19 pandemic.
And it is no surprise. In times of economic and social turmoil, the fine wine industry feels like a sound investment, at least compared to other asset classes. To find out why, read Ideal Wine Company’s recent blog post here.
The fine wines to invest in now
However, it has been a difficult year so far for many producers. With Covid-19 hitting an industry that relies on exports, global trade and face-to-face marketing events such as tastings.
With that in mind, if we were asked to select five wines to invest in today, where would we start? Here is our guide to fine wines worth investing in now.
1. Bordeaux wines
Bordeaux and Burgundy are both suffering under US tariffs, but remain hugely influential within the global wine investment markets. And with a long history of winemaking, Bordeaux is particularly well regarded. This region alone accounts for around eight in every 10 bottles traded globally. Where do you find value in such a crowded market?
Our pick: Chateau Angélus is one of the most prestigious winemakers in the region, with a number of great vintages (notably 1990, 1995 and 2001) behind it. Our choice is a bottle of Château Angélus 2015 Saint-Émilion, a wine that will age beautifully over time.
Champagne has long been a safe bet for investors, and 2019 was yet another good year. According to the experts at Liv-X, their Champagne 50 index grew by a steady 2.2% last year. Sales have remained pretty stable through 2020 too, accounting for around 10% of overall market share. The region has also avoided US tariffs, unlike Bordeaux and Burgundy.
Our pick: A fine champagne such as the Louis Roederer Cristal 2012 has done well over the last few years and we see no reason for that not to continue – it’s a vintage that is well worth adding to your collection if you can.
3. Burgundy wines
Like Bordeaux, Burgundy remains one of the most popular regions for those of us who want to invest in the very best wines. It is an area with a rich tradition of winemaking, with makers such as Chateau Rosseau Chambertin creating wines for collectors of the highest quality. Their 2013 Grand Cru wines in particular have done well in the last couple of years, and we wouldn’t hesitate to recommend them.
Our pick: Our investment choice is the 2006 Chambertin-Clos De Bèze – created not far from the Chateau Rosseau Chambertin – a powerful red wine that is well worth picking up.
4. Italian wines
Over the last six months of 2020 Italian wines have performed brilliantly on various. For example, Liv-ex offered a one-year return of 3.9% up to March. We see no reason for that not to continue, and wines from Piedmont in particular remain active among traders.
Our pick: There are many great Italian wines to choose from. For growth potential the 2013 vintage of the Barolo Reserva Monfortino is a good pick. It’s a special wine, with real fruity intensity and a big personality.
5. Natural wines
We’ve posted elsewhere about the current trend in natural wines. They’re hugely popular at the moment – but does that mean they are a good investment?
Our pick: Whether we should add a bottle of Lalalu Cabernet Franc 2018 to our cellar just yet is debatable. But we’re including natural wines as it’s a growing section of the wine market worth watching for investment purposes.