Where Will the Smart Wine Money Go in 2017?

Every wine buff knows that Burgundy and Bordeaux are both very popular wines. What only the experts know is that Burgundy has been statistically outperforming Bordeaux for the last number of years, at least until recent months.

Let’s Look at the Numbers

The beginning of 2012 was also the start of a 50% rise for Burgundy wines that continued until at least 2016. During the same period Bordeaux wines fell by almost 20%. This was after the Bordeaux bubble that happened from 2009 to 2012 suddenly burst, and hailed the slow and steady decline. In January 2016, everything drastically changed.
Wine consumption
Although the market indicators showed a dismal performance from Bordeaux, it continued to remain popular, and this popularity finally started showing up in the numbers. In the months between January and September of 2016 all indices increased by at least 10%, finally showing excellent growth potential. After years of declining numbers, Bordeaux is once again on the upward trajectory. While Burgundy is also showing growth, two Bordeaux indices are paving the way. First Growths are up by 13.5% and the Bordeaux Medoc Classed Growth index rose by 16.5%. It is not only Bordeaux that is shooting up. Blue Chip Burgundies have also risen by 11.3%.

The Battle of the Bottle

If there was a competition between the two, all bets would certainly be placed on Bordeaux being resuscitated. It is also interesting to note that despite the numbers of the past few years, Bordeaux continues to be well-loved and well-chosen, time after time.

Predictions for the Next Year or Two

All the signs are there. The rapid improvement of Bordeaux in recent months heralds a time of increased interest in an already eminent brand, and prices may well rise even more dramatically than Burgundy prices have in the past few years. This doesn’t mean that Burgundy will succumb to a rapid rise and crash cycle the way that Bordeaux has. Like Bordeaux, even when short-term investments may be slightly affected, other factors, like reduced yields the past year, will drastically push up release prices in the coming years. Fine wine investors can rest assured that both the Bs remain relatively safe investment options.

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