WINE INVESTMENT | AN INTRODUCTION

There are a number of contributing factors to demand, which can be broadly split between those that fluctuate and those that remain consistent. In the former, global wealth creation is the most pertinent to the health of the fine wine market. This was brought into sharp relief over the last decade with the emergence of various Asian countries, with Hong Kong and China at the forefront, as major new participants. China’s relatively loose fiscal policy resulted in swathe of newly wealthy collectors whose interest drove prices up and up, albeit on a small selection of wines. The correction, when it happened in early 2011, did bring prices down but interest and enthusiasm for wine did not dwindle and it is this fact that makes wine investment such a convincing proposition. As new markets emerge, the underlying knowledge of the collector and their acquisitive desire only adds to the pressure on supply.

On the supply side, there are other factors at play. Demand for the top wines of Burgundy has seen a marked increase over the last few years but it has been frustrated by the vagaries of the weather. Frost and hail over various recent vintages resulting in domaines losing the equivalent of an entire year’s harvest over a four-year period. When such losses feed through the supply chain and allocations are reduced, it is those merchants with the longest standing and strongest relationships with the growers that are best placed to fulfil orders. In this regard Goedhuis Waddesdon is unquestionably one of the best placed merchants. Our relationships not only allow us to offer a broad selection of potential investment wines but also to navigate more fallow times successfully.

We are happy to announce that as of December 2024 we are using our own data to provide you with the most accurate and up-to-date information on the current market prices of the wines in your reserves.

We compile data from various sources and apply our proprietary algorithm to assess the market price of your wines. Our in-house team has been refining this system since 2021 to offer the most accurate pricing possible for a wide range of wines. We use the lowest realistic market value from a reputable merchant, ensuring prices are up to date whenever possible. When recent merchant listings are unavailable, we use other vintages of the same wine, combined with vintage quality metrics, to estimate a fair valuation.

For large formats, we use listings specific to that format to account for the premium they often command. When such listings are unavailable, we apply a bottle multiplier to reflect a fair premium based on the region.

Notwithstanding our considerable database of prices, it is not always possible to provide an automated market valuation so please do not hesitate to contact us for further advice.