Prices of Rare & Invesment-Grade Wines Decline Sharply
French Winery in Aquitaine (© Photowitch | Dreamstime.com)
Even the rarified world of collectors who obtain rare vintages and investment-grade wines is feeling the pinch of a difficult international economy. Aabalat Fine & Rare Wines, a seller of investment-grade wines in Petaluma, California, has seen prices drop approximately 25%. Despite the sharp decline in prices, the volume of sales has not increased.
The slumping luxury wine market is in stark comparison to recent boom times. Says Bob Orlandi, owner of Aabalat Fine & Rare Wines:
Back in 1998, wine was just beginning to gain mass appeal and more and more people began collecting wine for either personal enjoyment or investment. By the beginning of 2008, we could barely keep up with demand for the 2005 vintage Bordeaux, large formats, and other ultra fine wine. As a result, prices dramatically increased over that 10-year period.
There may be a silver lining to the weakened market. The folks at Aabalat believe “…a sharp rise in sales when the economy begins to rebound is inevitable…because wine is finite. Once a vintage is produced, you can’t make anymore. Therefore the laws of supply and demand apply more rigorously.”
For additional information on Aabalat go to: Aabalat Fine & Rare Wines