Corkr Fine Wines

Yquem is a wine that has seen a lot of interest recently with the legalising of sweet wines in to China.

Prices for Yquem had prior to this, stayed comparatively low and affordable compared to First Growths, but now prices are rising.

Both the 2009 and 2010 En Primeur release prices set new bench marks for future pricing and this has had a positive effect on back vintages. But as you can see from the Table below, the 2002, 2003 and 2004 stand out as wines that look undervalued, especially considering that they have been awarded 95 points by Robert Parker, the same score as the 2005, 2006 and 2007. Worth considering adding to your wine portfolio ?

Yquem vintages below:
2010 Yquem - £4, 800
2009 Yquem - £5,000
2007 Yquem - £3,300
2006 Yquem - £3,250
2005 Yquem - £3,375
2004 Yquem - £1,550
2003 Yquem - £1,800
2002 Yquem - £1,835
2001 Yquem - £4,700
2000 Yquem - £3,250

The market so far in 2012 has seen quite a lot of volatility with some members of the trade continuing the panic selling that started in the last few months of 2011. This led to prices reacting negatively and we have seen the largest bear run since 2008.

On Liv-ex (the wine stock market) we have seen in the last couple of weeks some positive signs of buying interest returning to the markets. Initially the concentration was on Robert Parker's "Magical 20" and Burgundy, due to China's new interest, but with the the 2009 Bordeaux En Primeur wines now becoming physical, this has brought a renewed desire to purchase wines from the best vintage in 60 years at prices well below the 2010 vintage and mostly below the original release prices.

One thing that we have noted and believe will reflect on future prices is that many of the 2009 vintage wines will be drinking early from 3 to 5 years and this could have a marked impact on the future availability of the 2009 vintage, remember supply and demand, scarcity and future high prices are a possibility.

The last 4 months has seen all First Growths go out of favour with investors and prices have declined to values not seen since 2009.

Liv-ex has just written a report headlined "How low is low? They did a survey with traders with regards to First Growths and found that the £250-300 per bottle price range was where the interest starts to rise among their private clients. Liv-ex also noted that the 2008 correction has a similar market graph trajectory to the current market and the low point proved to be December 2008.

When in Bordeaux for the 2010 En Primeur tastings, we had a lunch with one of our Negociant's and we asked what should we consider buying and holding and the answer given was First Growth's £5,000 or below, as he felt that £5,000 would be a resistance line that First Growths would trade at in the near future.

The present lowest bottle price for First Growths are at £300 per bottle or £3,600 per case of 12 and we are presently in December 2011, with a price correction that mirrors the 2008 correction. December 2008 proved to be the best time to buy. Is December 2011 your opportunity to buy in at the bottom?

Wines to consider:
Haut Brion 1995
Haut Brion 2001
Haut Brion 2003
Haut Brion 2004
Mouton Rothschild 1995
Mouton Rothschild 2003
Latour 2002
Latour 2004

Montrose 2009 in the lat few months, has been one of very few wines that has not seen a price fall. The reason being is that it is a likely 100 point wine and is compared to the 1990, the only Montrose to ever be given the top score.

Montrose 1990 rated 100 points by Robert Parker is presently trading at £4,600 In Bond. The 2009 is presently trading at £1,400 In Bond.

We have seen a great deal of trading on Robert Parker's "Magical 20" with much interest and a 16% price rise on Cos D'estournel 2009 rated 98-100* points by Robert Parker due to the belief that it is a future 100 point wine.

Montrose 2009, also a future possible 100 point wine, with historical proof of what price it may achieve in time, is not only £1,000 cheaper than Cos D'estournel 2009, but has yet to receive the attention it deserves. We are purchasing this wine, not only because we have tasted it En Primeur and thought it was stunning, but because we see a good future for this wine.

View details on - Montrose 2009.

The first real sign of market movement upwards on Liv-ex has been seen with a great deal of interest in Parker's "Magical 20".

The main climber so far is Cos d'Estournel 2009. The 2009 has climbed from £2,100 to around £2,400 in just over a week, an increase of 14%. Parker is signalling that this wine will be marked up to 100 points, which should see the price climb considerably further.

The 2005 Cos d'Estournel is showing signs of following suit, we should see prices rise close to £2,000 in a short time.

The list is as follows:

1. Ch. Cos D’Estournel,

2. Ch. Pontet Canet,

3. Ch. Pichon Lalande,

4. Ch. Léoville Poyferré,

5. Ch. Léoville Las Cases,

6. Ch. Palmer,

7. Ch. Malescot St. Exupéry,

8. Ch. Pape Clement,

9. Ch. Haut Bailly,

10. Ch. Angelus,

11.Ch. Trotanoy,

12. Ch. La Conseillante,

13. Ch. Pichon Baron,

14. Ch. Lynch-Bages,

15. Ch. Smith Haut Lafitte,

16. Ch. La Fleur-Petrus,

17. Ch. Clos Fourtet,

18.Ch. Rauzan-Ségla,

19.Ch. Brane-Cantenac,

20. Ch. Le Gay

Carruades de Lafite has like its elder sibling, Lafite Rothschild, seen quite a down turn in the last 4 months, with prices dropping on average around 20%. In the last few days we have seen positive figures being posted on Liv-ex with renewed interest. Liv-ex today was showing a +2.7% on Carruades de Lafite 2008 trading around £3,300.

Just over 6 months ago Carruades vintages were trading between £3,450 to £4,300.

Our advise would be to purchase vintages that are below these figures, the 2010, 2009, 2006, 2000 and 1995.

Lafite Rothschild 2010 has over the last 3 months been affected by the economy as a whole and has seen a drop of 23%, but as reported on Liv-ex (the Fine Wine Exchange) Lafite Rothschild is now showing positive figures and is on the rise. This has been reflected across the wine trade with for example a case of 6 of Lafite 2010 moving from a low of £4.800 to £5,400 in a matter of days. We believe the time to buy is now before the market rises further.

The economy as you all know is looking positively weak and there has been a great deal of volatility in the markets.

The wine market has in the last 3 months seen prices drop quite steeply especially for First Growths, a Bear market. Liv-ex, the wine exchange has dropped 6.35% last month, but is it all doom and gloom ?

Take these two options: 1) hold on to your wines, but be aware that prices could drop further; or 2) sell now, take the cash and re-invest when the market bottoms out, buying back the same or different wines at a lower price.

The first option means if the price of wines drops from say £12,000 to £10,000 and then recovers to £12,000, you have made nothing.

The second option, if you sell at the same price of £12,000, then buy back in at £10,000, you will have realised £2,000 in cash. If the price then recovers to £12,000 and you sell again, you will receive another £2,000. A healthy profit of £4,000. Its that simple !!

The market for Lafite Rothschild has recently seen a downturn due to over pricing by the Chateau for both the 2009 and 2010 En Primeur vintages. Prices have dropped in the region of 23% over the last 3 months.

Exactly the same happened in 2008, where prices of Lafite Rothschild dropped also by 23%, something that very few Wine Merchants and Negociants mention.

The economy in Europe at present is quite fragile, with the crisis of Greece, but if Greece are given the support by Germany that it desperately needs, this should put confidence back in the markets and we may see a light at the end of the tunnel and Stock Markets rally.

The benefits of wine is that the wine market is less volatile and therefore there is less risk than investing in other assets, like Stocks and Shares. At present the market uncertainty in the financial markets have seen a great deal more investors looking to diversify their money into wine as it is seen as a more stable market.

Movement in wine prices is affected mostly by Supply and Demand, due to limited quantities being produced each vintage. The best wines from the greatest vintages with high Robert Parker scores have historically seen returns of 25% or more.

Prices for the 2005 vintage Lafite Rothschild having lost 25% in 2008, bottomed out at £10,000 in 2008, then steadly began to climb to £12,500.

Prices for the most recent vintage, the 2010 Lafite Rothschild has mirrored the historical fall of the 2005 and can now be purchased for close to this price.

Lafite Rothschild 2010 has an identical Robert Parker score to the 2009 but is £2000 cheaper and now looks to be undervalued. The 2009 and 2010 vintage have been compared to the 1989 and 1990, the 1989 vintage was praised, just like the 2009, but within 3 years the 1990, a wine built for long term ageing, like the 2010, was seen to be the better wine and is now viewed as one of the greatest vintages of the 20th Century.

Is it time to buy Lafite? Is it time to start buying Lafite 2010?

We believe the time is now, but look at it as a long term investment where you should see healthy gains.

View wine - Lafite 2010 Best Price on the Market.

View article from the FT - Does your home insurance cover the wine cellar?