Warren Buffet advises investors to ‘buy at the market low’ and they are buying big with six-figure wines seeing busy trade.
Which high-ticket wines are leading the market?
Activity on the secondary fine wine market in mid-October recorded a spike in high-value wines being traded. Buyers are taking advantage of the current conditions to acquire legendary wines that have the pedigree to yield the strongest returns going forward.
A prime example is Burgundy’s Domaine Leroy Romanée St. Vivant 2008, which sold at £104,000 (12 x 75cl) last week. This was the first time the wine has traded on Liv-ex and was previously sold at auction in January 2024 with Zachys in New York, 57.4% below this price at £44,270. Liv-ex report that the best price quoted for the wine on the 18th October 2024 was £192,200.
Top 5 traded wines mid-October 2024
Wine | Region | Trade price * |
Domaine Armand Rousseau Charmes-Chambertin 2016 | Burgundy | £7,500 |
Le Pin 2004 | Bordeaux | £20,746 |
Domaine Leroy Romanée St Vivant 2008 | Burgundy | £104,000 |
Domaine Romanée Conti Richebourg 2013 | Burgundy | £37,580 |
Chateau Petrus 2009 | Bordeaux | £34,000 |
Source: Liv-ex.com 18.10.2024. *Trade price week commencing 14.10.2024
Investors are grabbing the opportunity to acquire top Burgundy, such as Domaine de la Romanée Conti, at significant discounts. Earlier in the month DRC vintages were among the top traded wines by value. Domaine de la Romanée Conti, Romanée Conti 2019 traded at £151,908 (12 x 75cl), its lowest recorded price on Liv-ex. The 2015 vintage sold at £244,680 w/c the 7th October was the wine’s most discounted price since 2021. What this clearly demonstrated is that investors are still prepared to acquire six-figure wines, and this is the moment to do so!
Of course, you don’t have to go that big. Domaine Armand Rousseau’s Charmes Chambertin 2016 was the most traded wine by value week commencing the 14th October at a much more modest £7,500.
Bordeaux icons are also currently priced to offer investors significant scope for future growth. Chateau Petrus 2009 traded recently at £34,000 (12 x 75cl), and this price level has not been seen since 2021, before the bull run peak.
Fellow Pomerol icon, Le Pin, is also experiencing increased demand in the secondary market. With Burgundy-like values due to very low production levels and market supply, the opportunity to secure Pin and Petrus at current prices is relatively rare.
Le Pin 2004 was the second most traded wine by value mid-October with a case price of £20,746 on Liv-ex and the producer's wines accounted for 13.2% of Bordeaux trade value that week. Other prime Pin vintages on the move were 2005, 2009 and 2010, all outstanding years.
Rare, older wine investments hold value
It's important to remember that older wines are scarcer and analysis shows that they are holding value better. Notably, First Growth Chateau Latour 1982 has been traded on the secondary market for over forty years. The reduced supply available has protected price performance during the downturn with values remaining consistently £20,000 to £22,000 (12 x 75cl) on Liv-ex since 2018. With this in mind investors should consider the opportunity to acquire legends now for a long-term hold.
There is currently a very significant opportunity to buy high-yielding, blue-chip fine wines at prices offering strong growth potential.
The market has undergone a sustained two-year period of price correction and there are indicators that certain regions and wines are at, or near, their market bottom.
It’s a Buyers’ Market in the truest sense. Whether you are a new investor in wine, see our Guide for insight, or adding to your portfolio, now is the time to buy!
For more information on the current market opportunities speak to a member of our expert team on 0203 384 2262.