2021 Bordeaux Wine Futures: Should You Buy?

Renowned wine investment platform Vint is set to launch its latest Bordeaux futures offering on August 31, 2022. This wine investment offering, named Bordeaux En Primeur 2021 Collection, is the most diverse Bordeaux futures offering to date, with 1,164 bottles of 2021 vintage Bordeaux. The 2021 wine futures have a collection value of $230,000, with a share price of $50. You can invest as low as $50 to acquire a stake in the luxury fine wine collection.

Understanding Wine Futures

Similar to commodities trading, investors can buy wine futures — also known as En Primeur — to gain exposure to vintage fine fines. These contracts are typically traded for physical settlement, meaning investors receive vintage wine bottles nearly a year after purchasing the futures contracts.

The En Primeur system is one of the most affordable ways to invest in fine wine, as the futures are traded when the wine for sale is still in the barrels after harvesting. They are typically kept in that state for 12 to 24 months, after which they are bottled and sold commercially. Thus, the subsequent aging of the Bordeaux makes it more expensive if bought retail two years later.

2021 Bordeaux Features

The 2021 wine harvest was no cakewalk, as the French Châteaus battled frost and mildew. The latest collection is currently being compared to the 2017 vintage Bordeaux. However, the 2021 En Primeur is priced 6.6% below the 2017 wines, making the former a value investment option. Furthermore, the 2021 Bordeaux wines have so far received better ratings compared to the 2017 counterparts, thereby having a relatively higher quality-to-price ratio.

Bottom Line

Currently, the 2021 En Primeur is priced 5% below the retail bottles available in the U.S. As the 2021 Bordeaux futures are expected to be available for sale within 2024 to 2027, the higher resting time might boost their value further in the market.

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