Lafite Rothschild Update May 2012
I don’t know if you have been reading our newsletters lately but there’s some interesting news on the market.
Chateau Lafite Rothschild have released their 2011 vintage in the En Primeur campaign a whopping 30% lower than last years release price. Its trading at around 4000 Pounds which makes it the cheapest Lafite currently being sold. It’s good to see Lafite lowering their prices, mainly because the 2011 was not a great vintage but also because the chateau have been increasing their prices for the last five years.
This should have a positive impact on the market because if the Chateau keep increasing their prices then it will lower confidence in the Chinese market so this news will hopefully bring investment back into the market and increase activity.
Chateau Latour 50% lower
Another piece of news is that Chateau Latour has decided to pull out of the En Primeur market and they’ll no longer sell their wines until they become ten years old. Latour have also released the 2011 prices which are 50% lower than last years prices.
This potentially poses good news for anyone holding Chateau Latour, perhaps in five years, demand could rise as people realise they can’t buy it anymore…..
This kind of news is good for investors like us because we are already holding onto Latour. The fact that we don’t buy En Primeur wines as its too risky for our methods of investing will not affect us on new vintages.
The price of first growth Bordeaux wines are much lower than six months ago, there are still some bargains out there although we can not see prices moving much, looking back over the last few months valuations.
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