Oxstones Investment Club™With an increasing interest in wine investment and the Wall Street taking a personal interest in the wine market, it is expected to be a promising year for wines. Wines have been stored and traded as investments for many centuries now. The current industry standards and tools have made it a lot easier to track the prices of Fine Wines. A few decades back, wine investments were all about Bordeaux and their first growth wines. Experts often considered as a pyramid with lots of reds and white wines making a base of the hierarchy, and wines like Latour and Châteaux Margaux at the top. However, the trend has changed lately and the past two decades have witnessed Burgundy becoming the most-sought after wine in the world.
Burgundy is known in the world for its Pinot Noir wines, which are sold with the name of the region itself. With the ever-increasing popularity of Burgundy wines, the Burgundy En Primeur is the most sought out occasion for the next year trade. En Primeur is a system developed to allow collectors and investors to get their hands on Vintage wines while they are still in the barrels. The trade occurs a year before the official release of wine and most of the leading wine brands including Bordeaux, Burgundy, Port, and Rhone Valley follow the tradition.
What is the reason behind the popularity of Burgundy Wines?
First, there is a vast difference between Burgundy and Bordeaux in their respective availability. It sounds feasible to purchase additional 5,000 cases of Bordeaux, but that is not the case with Burgundy. Burgundy does not come with a guarantee of quality or quantity and consistency has been an issue with the wine. These obstacles are responsible for increasing the exclusivity of this wine. There was a consistent supply issue with Burgundy for the past three years including 2010, 2011, and 2012. According to researches, the producers of wine in Burgundy have lost an entire vintage over these three courses. With such scarcity of Burgundy wine, it is obvious that both the investors as well as collectors will be ready to pay a higher price for this wine.
In 1990, a case of Domaine de laRomanée Contiwas traded for £3,000, and after two decades, the same case is valued at £200,000 nearly. The low production and limited supply of these wines have made them immensely popular throughout the world. The trend of Burgundy will continue for years to come. The collectors of Burgundy are not as much willing to part with their stock as any other brand fans. This is the reason behind the increasing popularity of Burgundy and it will possibly turn out as the unrivalled king of the wine industry.
Top 3 Wines from Burgundy
Are you planning to buy Burgundy wines this year? All the investors, as well as collectors, try to grab a bottle of a Vintage Burgundy wine desperately. However, not every Burgundy wine will turn out to be a profitable acquisition. Let us find out some most profitable and luxury Burgundy wines available in the world.
- 1. Joseph Drouhin ChambolleMusigny: It’s among the top few luxury wine from Burgundy, Joseph Drouhin ChambolleMusigny comes from Musigny as its name signifies. This red wine enjoys the flavors of truffle and an aroma of black cherry and violet.
- 2. Armand Rousseau, Chambertin Clos De Beze (2009): It is a red still wine and has received excellent ratings from different critics. It is currently the number 9th wine in index. Armand Rousseau, Chambertin Clos De Beze is considered to be one of the best wines available in the world as of now.
Armand Rousseau, Gevrey Chambertin Clos St Jacques (2009): The price of Armand Rousseau, Gevrey Chambertin Clos St Jacques has been on the lower side in the past few years, but nonetheless it is a fabulous vintage wine. It is ranked 10th in the Liv- Ex 100 index of 2013.
The increasing popularity of Burgundy has made it a must to have wine investment in your portfolio, though some investors may call it an unsustainable growth. Fine wine investments have always been fruitful and let us hope that it turns out to be true with Burgundy wines.
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