New & Old World Wine

New & Old World Wine

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The challenge for the investor is to understand the market and make exceptional choices.

New World Wines

 

New World wines are those wines produced outside the traditional wine-growing areas of Europe.

 

The investment market for New World wines has grown significantly in recent years and there is now a remarkable list of boutique fine wines regularly traded for profit and pleasure. Cult wine is in rapid evolution. New interest, new market mechanisms, limited supply, reputation, winemaker and undeniable quality at a low initial cost have thrust many New World wines on to the world stage.

 

There are wines that are being produced in tiny volumes and traded only to subscribers, almost like Members only clubs.

 

Wines such as Screaming Eagle from the Napa Valley in the United States sell for thousands of dollars per bottle in an exciting vintage, and regularly turn up in auctions all over the world. The challenge for the investor is to understand the market and make exceptional choices. And this is where Premier Red’s expertise can help.

 

We recommend the New World wines that are made up of ‘small cap’ vineyards, which produce wines of outstanding quality in extremely low volumes and often palatable starting prices. This, coupled with rave reviews and fanatical buyers, has created some of the most exciting buying conditions we have seen in the last decade. Although risk is involved, the potential for exponential growth is hard to ignore.

 

 

Old World Wines

 

Old World wine refers primarily to wines made in Europe and mainly from vineyards with long histories of winemaking. These are primarily from the Bordeaux region, made up of a tier system created in 1855 for Napoleon III in which wines were classified into Growths 1 to 5. Laws were also passed to limit acreage used by the Premiers Crus (First Growths), which has kept output unchanged over the course of time.

 

The tier system was developed based on quality and prices realised by each Châteaux over the previous 100 years.

 

Apart from one addition in 1973, when Château Mouton-Rothschild was promoted from a Second Growth to a First Growth wine, nothing has ever changed. In fact, the laws put in place in 1855 are vigorously upheld today and controlled by EC directives.

 

First Growth Bordeaux are considered the pinnacle of Investment Grade Wines due primarily to their continued performance and long history. The First Growth Chateaux are: Lafite Rothschild, Latour, Haut Brion, Margaux and Mouton Rothschild. Historically most physical auction figures have been generated by the most famous Chateaux in Bordeaux. However, in recent years this has expanded to include premium wines from Burgundy and Tuscany.