Expected Returns
According to Christies published auction reports going back 70 years, given the parameters that better wines from good vintages were bought, each decade over the last seven has yielded between 400% and 600%.
There are of course fluctuations with some superstars failing to improve as much and others going crazy. Carruades de Lafite went crazy in the last few years from a starting price of £150 - 200 per case as recently as 2004 and it now sells from £3300 - £4000.
Don't we all wish we had seen that one coming. Wines are not a "get rich quick" option so please be patient and be prepared for a wait. I always suggest ten years but often a reasonable return can be achieved in five years. Those with greater patience willing to wait twenty or thirty years are likely to take the greatest reward. I have many clients who intend to supplement their pension with wine that is of course exempt from capital gains tax.