Feb
25
Buying Futures
Buying futures, or “en primeur,” is the perfect way to purchase wines before they are released into the open market. Bordeaux futures work like other market-traded commodities - you invest in wine that has not yet reached the market. This allows you to obtain a share of a potentially rare wine at a bargain price, then watch it increase in value. You take possession of the wine when it becomes available in approximately 24 months.
To some, the concept of paying for wine years before they receive it may seem odd. However, there are many advantages. Wine futures afford consumers unprecedented access to world-class wines that may never be seen on retail shelves. Many chateaux and estates have earned such a reputation for excellence that their wines never see the open market. Every single bottle is sold via futures. Price is also an issue. It is extremely unlikely that these wines, were they to someday be available in limited quantities, will ever be sold for less than on a futures basis. Historically, vintages such as these increase in value almost monthly until their release two years after purchase. For example, we paid for the wines listed in the previous blog entry two years ago, and the purchase cost now, with the change in the Euro, would 25% greater or more.
Buying futures is a unique opportunity for collectors and investors alike to have access to wines from great estates from an outstanding vintage that will age well for many, many years.
