Bordeaux prices down 30% at auction
Has the Lafite bubble burst? Bordeaux prices are down 30% at auction and in some cases by 50%. Chateau Lafite-Rothschild, one of the five Premiere Cru Bordeaux, has seen its 12-bottle cases of 1982 that regularly sold at auction for $60,000 and even $80,000 as recently as two years ago, drop to $40,000 or less.
According to Reuters the global auction market for fine wines is expected to shrink to about $400 million this year as supplies and credit tighten and bidders back away from Bordeaux.
The Asian markets, which up until recently could be relied upon to pay extreme prices for Bordeaux and Burgundy, are now starting to diversifying their fine wine portfolios. Reports from the latest Hong Kong auctions saw the sale of a prominent Champagne collection, as well as wines from the Rhone, California and Italy.
Jamie Ritchie of Sotheby's believes prices will flatten out before resuming a slow but steady rise. He agreed the top Burgundies are very strong, particularly Domaine de la Romanee-Conti, but said supply is the problem.