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“I have long been wary of the term ‘wine investment’. Over and above interest in buying great wines and building a cellar this request however has been leveled at me on an ever increasing scale in the last few years, and even now during the 'Credit Crunch'. As such I do have to take this seriously but as definitely secondary to buying the best wines to drink. I primarily focus on the great estates (“blue-chip” wines); from classic vintages; which will be consumed over the following years. With these fundamental factors I believe any possible investment potential (can go up and down) should likely take care of itself. As these classic wines are steadily consumed, by definition they become that bit more scarce with every passing day and the value historically has only ever gone in one direction, though recently some poorly chosen wines and some of the 1st Growths which were being targeted for investment only have begun to drop in their market value.

Basically, we do not look to indulge in wine as an invesment, but look to source classic wines, generally punching above their weight that whatever their market value up or down the contents remain undiminished in quality.

When building cellars, however, we are particularly selective. We offer “En Primeur” (That is buying futures of the great Bordeaux Châteaux whilst they are still in cask) but only in good to outstanding vintages. The big traditional merchants and brokers will offer most Bordeaux estates but I ruthlessly reduce my recommendations from perhaps a potential 300 wines to for instance 75 wines in the phenomenal 2005 vintage; and to 41 wines in the beautiful left-bank vintage of 2003; yet not a single red wine in 1997.

 

Most of our long-term customers bought En Primeur in 1989-1990-1995-1996-2000-2003-2005 and aside from the coincidental rise in market value of their wines they are simply being bought to drink and enjoy. Individual selections will range from the very best Cru Bourgeois up to, arguably the greatest wine, Château d’Yquem. In the example of Yquem I recently advised customers against indulging in the 2005 as I felt the wrong side of £ 4,000 was simply not justified in comparison to better and cheaper recent Sauternes vintages (like 1990-1997-2001). This is simply a case of seeking out what i perceive to be better value pound for pound, a prime example to me where the 1997 vintage looks a better buy than the 2005.

Being this selective means we don’t have the “biggest buying boots” via the Bordeaux négoçiants but does mean that when you look back on the wines in your cellar in 10 years time you will only have good or classic wines. Additionally we do have small allocations on some highly sought-after names and cult-wines from Australia; California; and Italy.

Hopefully you are buying wines solely for the purpose of drinking over the following years but if you ever need them as a back-up for school fees etc., it is worth mentioning that selling your own wines, privately or to a merchant, is still totally exempt from capital gains tax.

To reiterate, the beauty of wine is that the contents of a great bottle will be undiminished by any such rise or fall in its value. Simply uncork; put your feet up; and enjoy!”

(Tuggy Meyer, January 2009)



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