When dealing with fine wine investments, knowing what to buy, when to buy and when to sell is essential. Naturally, not all fine wines can yield good returns. A smart investment approach and good selection are key.

This week, we bring to you two wines — Chateau Mouton Rothschild 2000 and the Chateau Le Pin 1990 — that have increased significantly in value over the last five years.

Even though there are differences between the two wines — the vintage (10 years apart), the Robert Parker score, the Chateaux annual production, besides others — both wines are high on investment potential.

What’s more, these fine wines have delivered superior returns against the more traditional investment — gold — in the last five years.

Purely based on numbers — the return on investment term and stability in performance — these wines are a justifiable addition to any investor’s portfolio.

Mouton Rothschild The Mouton Rothschild 2000 is a left bank wine, produced in the North West of Bordeaux, in the Medoc region. Many of the world’s finest wines are produced in this region, some from this very chateau.

The frontrunner for the chateau, the Mouton Rothschild, is a first-growth wine, according to the Bordeaux Classification of 1855 — the ranking system for Bordeaux wines.

The Mouton Rothschild 2000 received a solid 96 points from wine guru Robert Parker, a good indication of the wine’s potential.

Currently, this wine is available at around €13,700 (per case of 12). The elite wine has delivered a staggering 112 per cent over the past five years.

Chateau Le Pin 1990 The Chateau Le Pin 1990 is a magnificent right bank wine, produced under the Pomerol appellation (French wine-growing commune) in Bordeaux. When compared with other wine estates, this Chateau is minuscule, yet it consistently produces the world’s most highly-rated fine wines.

With an annual output of just 700 cases, it is no surprise that cases of Chateau Le Pin are in high demand.

Although right bank wines are not classified, the Robert Parker score of the Le Pin 1990 is a spectacular 98 points, further demonstrating its great investment potential.

Currently, a case of 12 is valued at around €56,500. The price of this wine increased by a robust 53 per cent over the last five years.

Wine power

When comparing wines head-to-head, it is important to remember that there are numerous factors that determine the value and investment potential of any given stock. The producer (chateau), vintage, provenance, annual production, Robert parker score, storage conditions — all play a role in determining the value of a wine. Each and every wine is unique and constantly maturing inside the bottle, just as the stock potential itself evolves outside the bottle, namely in the global fine wine market.

For example, a not-so-highly scored wine may increase significantly in value on maturity or rarity, while a perfect case of highly-rated wine may not see a significant increase in value for several years, due to lack of demand.

( The writer is the CEO of Bordeaux Traders. The views are personal. )

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