The Best Wines to Buy Now for Investors & Collectors
by Alex Andrawes
In the world of wine investing, timing, knowledge, and a keen eye for potential are everything. As global tastes evolve and markets fluctuate, identifying wines that not only promise excellent drinking but also offer significant appreciation potential is an art. For investors looking to diversify their portfolios or enter the wine market, certain wines stand out for their investment potential. Before you dive in headfirst, please be aware that investing in fine wine has its pitfalls, and you should consult with a financial advisor to discuss your long term and short term wants and needs from an investment perspective.
Here’s a guide to the best wines to buy now if you're a wine investor.
Understanding Wine Investment
Wine investment can yield impressive returns, in some cases beating the S&P500, but it requires patience, a good storage solution, and an understanding of the market. The best investments are often in wines that are in limited supply yet high demand, from outstanding vintages and reputable producers. Such wines have the pedigree to age gracefully, increasing in value as they mature. As time progresses, wines from a particular vintage will deplete via consumption naturally, reducing the overall supply of any one wine from a particular vintage.
1. Bordeaux: The Blue-Chip Investment
Bordeaux remains a cornerstone of wine investment. The region’s classified growths, particularly from exceptional vintages, are highly sought after. Look for wines from acclaimed vintages such as 2005, 2009, 2010, 2015, 2016 and 2018. Producers like Château Lafite Rothschild, Château Latour, Château Margaux, and Château Haut Brion are perennial favorites, with their top vintages offering both prestige and potential for appreciation. Generally, Bordeaux wines will start appreciating at a higher velocity at year 8-10 as this is when the drink-thru window opens and depletion accelerates. Also note that buyer pools increase from collectors to restaurants seeking back vintage opportunities on the secondary markets. Right now (as of 5/2024) Bordeaux futures is in a distressed situation with the current vintage, generally ranked as excellent, are trading at 20-30% less than previous release pricing. It should be noted that futures can be found at prices below release prices in current times due to the insufficient demand for Bordeaux futures. This creates a buyer's opportunity for a patient collector/investor.
2. Burgundy: Rare Gems
Burgundy's small-scale production and the global demand for its wines make top-tier Burgundian Pinot Noirs and Chardonnays excellent investment choices. Currently down over 15% from market highs, blue chip Burgundy producers are always highly sought after. Focus on producers with an unwavering reputation for quality, such as Domaine de la Romanée-Conti (DRC), Domaine Leroy, Domaine Armand Rousseau and Domaine Roumier. There are plenty of up and coming 2nd or 3rd generation producers as well. Specific vineyards, or "climats," like Echezeaux, Vosne Romanee, Chambertin, and Musigny are particularly prized.
3. Rhône Valley: The Rising Star
The Rhône Valley, especially the Northern Rhône appellations like Côte-Rôtie and Hermitage, is gaining traction. Wines from Guigal, particularly the "La La" series (La Mouline, La Landonne, and La Turque), and Jean-Louis Chave’s Hermitage offer both scarcity and the potential for significant appreciation. The Southern Rhône's Châteauneuf-du-Pape, particularly from producers like Bonneau, Beaucastel, Rayas and Rotem Mounir also present investment opportunities.
4. Italy: A Blend of Tradition and Innovation
Italian wines, notably from Tuscany and Piedmont, are increasingly recognized for their investment potential. In Tuscany, the Super Tuscans, including Sassicaia, Ornellaia, Masseto and Tignanello, blend tradition with innovation, offering robust investment prospects. From Piedmont, Barolo and Barbaresco, particularly from producers like Giacomo Conterno and Gaja, are known for their longevity and appreciation potential. As of 5/24, it should be noted that Italian wines have held up to market inflation, in terms of price stability. This indicates that Italian wines could be poised for growth.
5. Napa Valley: The American Dream
Napa Valley Cabernet Sauvignons have carved out a niche in the investment world. Icons like Screaming Eagle, Harlan Estate, Opus One, Dunn, Dominus and Ridge Montebello known for their limited production and global demand, represent the pinnacle of American wine investment. Their exclusivity and critical acclaim drive their investment appeal.
6. Champagne: Celebratory and Investment-Worthy
Champagne, particularly from established houses like Dom Pérignon, Krug, and Louis Roederer (Cristal), offers unique investment opportunities. Limited editions and exceptional vintages from these producers are not just for celebrations but are also wise additions to any investment portfolio. Word-to-the-wise… seek vintage champagne for investment purposes, as generally non-vintage champagne does not appreciate in terms of investment, with time.
7. New World Surprises
Beyond the traditional European powerhouses, wines from the New World, including Australia’s Penfolds Grange, New Zealand’s Te Mata Coleraine, and Chile’s Almaviva, are showing promise as investment wines. Their growing prestige and limited availability on the global market make them interesting prospects for investors looking to diversify.
Investing Wisely
Investing in wine is not without risks. Market trends, vintage variations, and global economic factors (tariffs, inflation) can all influence wine prices. Proper storage is also crucial, as wine’s condition significantly impacts its value. Investors should consider working with reputable merchants, attending tastings to understand their preferences, and staying informed about the wine market's dynamics.
Become Educated
As with any investment, diversification is key. By selecting wines from different regions, vintages, and producers, investors can mitigate risk while enjoying the unique pleasure of building a wine collection with potential for appreciation. Whether for passion, profit, or a blend of both, wine investment offers a unique and rewarding opportunity. It is important to have resources and people you can trust with recommendations. Ask a local advanced or Master Sommelier at a fine restaurant about joining wine groups to help educate yourself on trends and producers. Wine Brokers and Wine Auctioneers are also a good source of information on what’s trending and how wine is performing in any specific category.