• William Bailey

Can You Double Your Money In this Wine?

Chateau Pavie | Wine Investment | Veblen Wines

Since 2009, our wine investors have been rewarded greatly by the price rises of a particular red wine from Bordeaux, Chateau Pavie.

Chateau Pavie benefits from a well-positioned terroir in the hills of St Emilion.

This famous estate was purchased in 1998 by Gerard and Chantal Perse and has, since then, been one of the best performing wines in the whole of Bordeaux, both in terms of critical acclaim and price performance!

After buying the estate for $31 million, Gerard Perse has invested tens of millions of euros into improvements.

St Emilion Vineyard | Wine Investment | Veblen Wines

This investment and hard work was greatly rewarded when, in the St Emilion Classification in 2012, Chateau Pavie was upgraded to Premier Grand Cru Classe A (the highest level for any wine in St Emilion) coupled with Chateau Angelus, and is now part of the same exclusive club as Chateau Ausone and Cheval Blanc.

But what does all this mean for you?

Here’s an example of the price performance of Chateau Pavie with data taken from the Liv-Ex Exchange:

Liv-Ex Chateau Pavie Performance | Wine Investment | Veblen Wines

A case of Pavie 2000 would have returned you 10 times the profit than an investment in the FTSE 100 over the same time period — which would you rather have held?

Chateau Pavie released the 2000 vintage to the market at £1,320 (per case of 12x75cl) in 2001.

It would now cost you in excess of £6,000!

Not a bad return on your investment right?

I know that you must be thinking “I don’t have a time machine, so what use is the past performance to me?” and don’t worry, here’s the answer:

At Veblen Wines Ltd we firmly believe that you can potentially double your money over the next few years by taking our advice to buy the best vintages of Chateau Pavie.

What happens if the market goes down?

The Liv-ex 100 (the leading benchmark for fine wine prices) has been in a bull run since December 2015, the index posted gains of over 25% last year alone!

However, as with any investment, timing is everything and if you had bought the wrong wines in 2011 then you would still be nursing a loss.

It is no secret that the fine wine market had some difficult years following the peak of the Liv-ex 100 from late 2011 (peak of market) up until mid 2014. Chateau Pavie (see chart below), however has continued to perform, and whilst the Liv-ex 100 fell by roughly 40% during the said period, certain vintages of Pavie increased greatly!

Chateau Pavie Performance | Wine Investment | Veblen Wines

It is our opinion that Chateau Pavie represents an opportunity for buyers — whilst the brand has performed very well, some vintages are still priced at less than 50% of their peers, whilst they boast a higher score from various critics!

As with any investment, there are no guarantees and past performance is not an indicator for future performance.

However, we believe that there are some compelling reasons to buy Chateau Pavie for potentially significant returns on any portfolio.

Here at Veblen Wines we are recommending that anyone who wants to make money over the next few years, add some Pavie to the portfolio and enjoy the profit that comes with holding one of the best performing wines in the market.

If this sounds good to you, request a callback and we will be in touch to see how we can use Chateau Pavie to put your money to work.

If you are ready to find out more about investing in this profitable market, send us an email to info@veblenwine.com or give us a call on 01622 672 314 and we’ll get in touch to see how we can help you.

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