Know when to invest—know when to drinkby Barry Smith / March 24, 2016 / Leave a comment
Published in April 2016 issue of Prospect Magazine
Perhaps the most important question to ask besides when should you drink a wine is when should you buy it. The system of buying Bordeaux wines en primeur (before they have been bottled and cellar-aged) used to serve château owners and wine merchants equally well. The owners didn’t have to keep their stock waiting to accrue value; while the merchants bought wines that could be sold for more at a later date. Though, recently, there has been much disquiet about the opening prices for grand cru Bordeaux wines, for they are some of the most sought after on the international market and the Bordelais know it. No longer are they prepared to let merchants profit from the high prices these wines command after a few years in the cellar. Merchants are unhappy, however, at the eye-watering opening prices of the best château wines—they are, after all, taking a risk. Buyers and wine critics have to taste these wines in barrel and predict whether the fruit, alcohol and acid will all coalesce into a balanced and elegant wine in eight to 15 years.
It was by making such a judgement call on the 1982 vintage that Robert Parker made his name. This was a time when many in the futures market were prepared to bet on the price of any desirable commodity, including wine. City traders didn’t have the expertise to judge fine wines, nor were they fluent in the vocabulary of wine connoisseurs, but they were good with numbers and Parker’s 100-point scale simplified the transactions. He proclaimed, over traditional voices, that 1982 would be one of the best vintages of the century in Bordeaux. A few years later people ca…