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10 fine wines to raise an investment toast to
by Dylan Lobo on Mar 22, 2013 at 07:00
Fine wine has been a profitable investment over the last 10 years and these wines from the Bordeaux region have potential to be very profitable according to leading experts.
When it comes to investments people are really passionate about, there are few which beat a good bottle of wine.
According to the Knight Frank Wealth Report, fine wine was the third most popular 'investment of passion' behind fine art and watches.
Investment in fine wine in 2012 increased 10% globally and by a massive 40% in Asia. To underline the potential of wine, over the 10 years to the end of the third quater 2012 the fine wine component of the Knight Frank Luxury Investment Index grew by 166%. This compares with a 36% rise in the FTSE 100 index (including dividends) over the same period.
Wine from the Bordeaux region has been among the most popular for investors. Robert Parker, one of the world's leading authorities on fine wine, recently released his ratings on the 2010 Bordeaux vintage, with 10 wines getting a perfect 100 score, making them attractive investment options.
Peter Shakeshaft, chairman of leading fine wine investment specialist Vin-X , says the Parker scores have further increased investor confidence in the market, with the firm seeing heightened investment activity just hours after the results were released earlier this month.
'The last two years have seen unprecedented scores for the Bordeaux vintages and a combination of a good climate, fertile soil and changing production methods have produced some exceptional wines which our clients are keen to invest in,' Shakeshaft says.
He adds: 'Last year’s Parker scores of the 2009 vintage saw $100 million added to the value of the wines reviewed overnight, with specific wines seeing significant price increases of more than 40%. We’ve already seen an increase in fine wine investment in certain wines, such as Pontet Canet immediately after Parker’s 2010 scores were published and we are monitoring the market very closely.
'This is simply too good a vintage to not include in the average investor's portfolio and with the market predicted to grow rapidly again during 2013 this is set to be a particularly promising time for wine investment.
Click through to read about the 10 wines to receive the perfect 100 score.
Our first new entry, this is a tiny estate of only three and a half hectares that has no chateau or winery but produces a wine with unique character because it has the high proportion of Cabernet Franc in Bordeaux in the blend. Low yields mean only 1,000 cases and high prices if you can find it.
Our second new entry is a true Pomerol diamond and equally hard to find. This estate has always been on great terroir on the Pomerol plateau with 50 year old vines but only brought back to excellence in 2006 through serious viticulture. Low yields mean there are only 300 cases available.
The most consistent 1st Growth scores again thanks to a terroir that Bordeaux experts consider to be the best in the entire appellation. Aided by the wealth of Francois Pinault the winery is modern which allows for precise vinification. Hurry because from this year there will be no more en primeur.
The legendary one hit 100 point wonder of 1990 has now been eclipsed twice by 2009/2010. Its dynamic owners only have 5.7 hectares to work with but low yields, hand harvesting, optical sorting and precision winemaking result in a top St Emilion. But hurry, less than 1,200 cases were made.
Named after Pope Clement V this property is producing world-class wine under the stewardship of Bernard Magrez and the world’s most famous wine consultant, Michel Rolland. The impeccable quality employed throughout has resulted in 8,000 cases of a rich, full-throttle but elegant wine.
The only 1st Growth outside the Medoc but with a history going back six centuries and excellent terroir. Traditional hand harvesting is followed by destemming and fermentation in steel vats, the first estate in Bordeaux to adopt this practice. Their 5th perfect wine, more than any other 1st Growth.
The bold step of being the first Bordeaux classified growth to introduce biodynamic viticulture has heaped massive dividends as this is the first 5th Growth (and 3rd /4th Growth) to score 100 points and repeat the feat the following year. The use of horses and cowhorn is unprecedented in Bordeaux but it works!
Owned by LVMH and until recently one of only 2 chateaux in St Emilion to be classified as Premier Cru Classe A this is a true powerhouse of the Right Bank. It has the most modern facilities in St Emilion with a new winery, barrel cellar, vinification room and tasting area completed in 2011. Only 6,500 cases made annually.
This estate has a stellar reputation in inverse proportion to its age. An accidental superstar its excellent quality combined with scarcity and comparisons with 1st Growths has ensured stratospheric prices. Low yields, hand harvesting and production of only 500 cases annually result in phenomenal demand.
The most famous and most expensive wine in the world ? What remains certain is that Petrus still remains in a select division of its own in Bordeaux with its record ninth 100 point wine still three clear of its nearest rival. An iconic wine but hurry as production is limited to 2,500 cases.