Fine wines rise in value because of two main reasons:
The first is that each vintage is produced to preordained maximum quantities, ranging between producers from one hundred to twenty thousand cases per year. The second is the ever-increasing demand for wines regarded as suitable for long term storage or ‘bedding down’. Basic supply and demand are the driving force behind the market with branding also playing a key role.
Fewer than 3% of all wines produced globally are considered to be of sufficient quality to rise in value, with only the vintages that are graded highly enough by the world’s most influential critics deemed to be of investment grade. With the price of these wines rising in value as they approach drinking maturity, the importance of selecting the correct vintage is fundamental to the performance of a portfolio.
The rarer a wine, the more people are willing to pay “whatever it takes,” especially as these wines become older.
Chairman of Acker Wines
Consumers, connoisseurs and collectors, together known as the secondary market, will traditionally look to acquire wines as they reach maturity. Their selection is often influenced by the world’s leading critics, whilst some buy based on brand, with history, ownership, wine maker and exclusivity also influencing buying patterns.