The Bubble Burst Commeth

I’ve said it before, and I’m saying it again. The Bordeaux wine bubble surely must burst soon. It seems like the only topic I write about sometimes, but it’s one that just gets to me. To charge these unbelievable prices for a bottle of wine is insane. $5,000 per bottle? $500? Insane.

UK’s The Telegraph reported on this very issue recently:

As one “vintage of the century” follows another, the more anxiety there is that such rises cannot be sustained: the Bordeaux bubble begins to look like a smaller, and more rarefied, version of the housing market, constantly exceeding expectations to the point where it seems it must surely burst.

Asians continue to drive consumption, and thus, higher prices. Despite this, I can see their cellars filling over time, and their consumption slowing. Once one has enough inventory, why buy more? But for now, the Bordelais are taking full advantage.

According to http://www.liv-ex.com, a site that reports on the the wine market states that this years prices have already started the climb higher. Chateau Pontet Canet released their 2010 vintage’s price this week to much uproar – their price was 39% higher when compared to their 2009. Other, too, have increased, 10, 18, 24%. These are great wines, but the big dogs haven’t even released their prices yet.

Keep in mind, these are futures prices. Meaning you can pay for the wine now, but as it’s the 2010 vintage, it’s still in barrels in the cellars of the French chateaux. You won’t get the bottle for two more years. Typically, the price only goes up if you wait to buy it in two years versus today. This time, I’m hoping the bubble will burst, and you can save by waiting.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s