Performance Of Bordeaux 2007- First Growths
In his Bordeaux 2007 en-primeur report, Robert Paker forecasted that this “unflaterred, seductive and fruit-forwarded” vintage was doomed to be an appeal. He believed that in 10-15 years the vintage would reach its maturity.
Now that we have entered 2017, it’s time to check Paker’s words against Bordeaux 2007’s actual increase upon their releases. In this blog, we’d like to take a closer look at the glorious first growths.
41.9% v.s. 69%
By 2017, Bordeaux 2007 has announced an average price hike of 69% upon release, outperformed Liv-ex Bordeaux 500 which only increased by 41.9%.
7 out of the 50 wines measured by Bordeaux 500 has set a record price. These included Angelus, Cos d’Estournel, Grand Puy Lacoste, Le Pin, Palmer, Pavie and Vieux Chateau Certan, disclosed by Liv-ex.com. Climens, exceptionally, reached its bottom.
Yet a 15.6% gap still existed between 2007 and 2011 in terms of market price.
The chart below illustrated the price variation of first growths 2007 in the past 10 years. Obviously, Lafite Rothschild varied the most, climbing from £1,900 in April 2009 to £8,200 in July 2011.
Despite a 25.6% cut down from its peak, Lafite was traded at a market price of £6,100, remained the highest among the five.
But it is not necessarily the best wine to invest in.
Sophisticated investors banked on Mouton for its consistent growth in the medium-long term.
In the past 5 years, Mouton secured an increase of 33% while Lafite dropped by 12%.
Margaux, gained 31% in the last 12 months, brought the biggest short-term return among the famous quintet.
Margaux and Mouton managed to keep the price fluctuation within 6% compared to that in 2011.