Bring me the best wine! Only the very best!
It is vital for the wine speculator to understand this attitude. The very best of any collectible, including wine, is likely to be overpriced relative to the second best example of that collectible. Not just priced higher, but overpriced.
Let's look at an examples of where pricing makes sense and another where it does not make sense:
DRC Romanee Conti vs La Tache. Romanee Conti has an average annual production of 450 cases/year, whereas La Tache produces about four times as much - 1870 cases, on average. For the 2002 vintage, the Romanee Conti gets around $6500 at auction, compared with $1700 for the La Tache. To me, this price ratio looks about right.
Now let's look at 2003 Bordeaux, Latour vs Montrose. Both Chateaux make about 20,000 cases a year, and both made less than usual in 2003. Both wines score 100 pts (RP). Yet Latour costs $1000/bottle, and Montrose is $250. Maybe Latour is better, but is it 4 times better? This ratio defies common sense. I do expect Latour to cost more, because it is a first growth, and there is a certain prestige associated with that, but not 4 times more.
Compare this to the 1990 vintage, where again, both wines earned top marks from RP. The 1990 Latour now trades for $900, and the 1990 Montrose costs $500. This approximate 2:1 price ratio is what I foresee for the 2003 Latour and Montrose. 2003 Montrose is on my short buy list for Bordeaux.
It is vital for the wine speculator to understand this attitude. The very best of any collectible, including wine, is likely to be overpriced relative to the second best example of that collectible. Not just priced higher, but overpriced.
Let's look at an examples of where pricing makes sense and another where it does not make sense:
DRC Romanee Conti vs La Tache. Romanee Conti has an average annual production of 450 cases/year, whereas La Tache produces about four times as much - 1870 cases, on average. For the 2002 vintage, the Romanee Conti gets around $6500 at auction, compared with $1700 for the La Tache. To me, this price ratio looks about right.
Now let's look at 2003 Bordeaux, Latour vs Montrose. Both Chateaux make about 20,000 cases a year, and both made less than usual in 2003. Both wines score 100 pts (RP). Yet Latour costs $1000/bottle, and Montrose is $250. Maybe Latour is better, but is it 4 times better? This ratio defies common sense. I do expect Latour to cost more, because it is a first growth, and there is a certain prestige associated with that, but not 4 times more.
Compare this to the 1990 vintage, where again, both wines earned top marks from RP. The 1990 Latour now trades for $900, and the 1990 Montrose costs $500. This approximate 2:1 price ratio is what I foresee for the 2003 Latour and Montrose. 2003 Montrose is on my short buy list for Bordeaux.
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