Collecting

Château Margaux, a first growth cult wine from the Bordeaux region of France, is highly collectible.

At the highest end, rare, super-premium wines are amongst the most expensive of all foodstuffs, and outstanding vintages from the best vineyards may sell for thousands of dollars per bottle. The most common wines purchased for investment include Bordeaux, cult wines and Port. Investment in fine wine has attracted a number of fraudsters who play on fine wine's exclusive image and their clients' ignorance of this sector of the wine market. Wine fraud scams often work by charging excessively high prices for the wine, while representing that it is a sound investment unaffected by economic cycles. Like any investment, proper research is essential before investing. False labeling is another dishonest practice commonly used.

Where to Start

Palates change and mature. Some people start out investing heavily in Cabernet Sauvignons from the Napa Valley wine-growing region in California and then find themselves saddled with wines they don’t like. Mercer started out with white wines. When his palate moved to reds, he decided to have his “white” sale. It takes time, experience and a lot of wine tasting to know what you like and would ultimately like to collect.

In this case, it’s essential to find a worthy wine seller who can lead you to the good stuff and can help educate your palate. One in your hometown is great, but it is not necessary. Jamie Wolff, partner at Chambers Street Wine & Spirits in New York caters to the Wall Street financial district, and has a wide national base and terrific industry connections. Wolff notes that beginner collectors should focus on accumulating a satisfying volume of boxes. It takes time to build a palate, and new collectors will want to minimize the inevitable mistakes. “If you have five thousand dollars for an initial investment, it doesn’t make much sense to buy one kind of top dog wine, such as a $3600 case of the first growth Bordeaux Chateau Lafite or the 2001 Domaine Romanée Conti, La Tache for $4600,” he says “If you do, you won’t have much budgeted for anything else. You can always add those trophy wines later.”

The big difference between an initial investment of $5000 or $25,000 is that with a bigger budget you can immediately stock blue-chip wines that are sure shots. Very few people have ever regretted having Domaine Romanée Conti or Chateau Lafite in their cellar. Some wines are sure crowd pleasers, even though outrageously pricey.

Keeping it Safe

Wine kept too warm perishes, so it is important to keep your investments cool and safe. You can buy a home-use temperature controlled wine closet, but if you’ve a substantial collection–say, around 2000 bottles–you you should invest in a walk-in. Five years ago Allen Dick, President of Dick Broadcasting in North Carolina, realized he had too many ‘nice wines’ (about 1800 bottles, many of which were high ticket items) that were stored improperly. “I was keeping them in a friend’s basement. Also, it really upset me that I couldn’t hold them or look at my bottles. If we’re having lamb for dinner, I like to run right down to the cellar and get what I want immediately.”

He had his local wine specialist consult with his contractor and $2,000 later he had a small room, temperature controlled, big enough for him to have easy access and even better, his investment was protected for their long haul into the future. A great lover of top growth in Bordeaux and Grand Cru burgundy, Dick’s advice to those starting out is to buy the best you can, and protect your wine environment.

What to Buy

You should plan on buying full cases. That way you can track a wine’s progress through the years without drinking that last bottle too soon. Buy wines that will be perfect for drinking in three to seven years, some between ten and twenty and some that can go on forever (such as port).

Balance is important. You’ll need all kinds of wine for a variety of cuisine and occasions. Find producers you adore and buy some from your favorites in every vintage. This will insure your entire cellar doesn’t mature at the same time. Keep in mind that though you might be a die-hard red wine drinker, if lobster or caviar or sardines or artichokes are your future, you should make room for a bit of white. And for the end of the meal, you’ll also need some sweet stuff; whites from Bordeaux’s Sauternes region, Hungarian Aszu, Loire sweet wines, German sweet wines and Port.

Collecting wine is a different hobby from just about anything else, because it is greater exponentially when shared and if you buy wisely, there’s even an extra benefit. Dick said, “I can go down to the cellar and pull my ‘85 or ‘89 Bordeaux to share with my friends. If I had to buy them now they’d be a few thousand dollars per bottle, but because I bought them when I did, I can just bring them out for a dinner party.” The thrill of the buying low and drinking high never wears off.

The Cellars

Once you decide to start a serious wine collection, you may have the urge to buy up as many bottles of your favorite vintages as possible. But before you start shopping, you should consider how much you have to spend and when you want to be able to start consuming your collection. Here are some tips for two different budgets:

• $5,000  Cellar

You should be able to buy an initial twelve to fifteen cases of wines, best consumed within three to six years. Price per bottle would be between $18-$30. In whites, look to St. Aubin and Chablis in Burgundy as well as Austrian and German Rieslings. In red Burgundy, look into Premier Cru in some lesser hunted appellations like St. Aubin, Beaune Teurons, Savigny and Gevrey-Chambertin. In Bordeaux, chateau’s such as Château d'Issan and Château Lagrange age with grace.

  Do not overlook Hermitage, Cote Rotie and Cornas from the Northern Rhone. And do pick up some beaujolais and Italian barbera and nebbiolo and barbaresco, as these develop beautifully with just a few years of age.

• $25,000 Cellar

Money makes this very easy but it is also makes it too easy to play it safe. Live a little dangerously. Yes, spend about $20,000 on the status bottles but then seed your cellar with the $5,000 cellar suggestions so you have something exciting to drink before you cash in your blue-chip wine. And when you’re buying your Bordeaux and top-tier grower Grand Cru Burgundy in the rarest vineyards such as La Tache and Richebourg, don’t overlook the jewels in Chambolle and Nuits St. George, barolo and brunello from Italy and the glorious rioja from Spain.

Planning your cellar carefully allows you enjoy a wider variety of wine and without worry that all of your bottles will mature simultaneously. A well-selected cellar is a luxury that allows you to share the wealth and celebrate with friends and family.