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Best Investment Wines 2022

Best Investment Wines in 2022

In this guide we share our views on the best wines for investment in 2022 to help you make informed investment decisions for your portfolio.

By

CultX Team

Best Investment Wines in 2022

The Fine Wine market in 2022

2021 was a good year for Fine Wine. The market gained 19.08%* and posted positive returns each month. This strong performance led some investors to fear that momentum would wane in 2022.

However, these concerns have proven unfounded and the market is demonstrating the resilience to macro-economic factors that attracts many of its proponents as an investment asset.

As of the end of Q1 2022, excluding commodities, the Fine Wine market has outperformed most major markets, including the FTSE100 and Dow Jones. Burgundy and Champagne continue to shine, with Louis Roederer, Cristal 2008 topping the trading charts by value.

The unique situation within which global markets have operated since the pandemic struck in 2020 makes predicting how any asset class will perform difficult. But, as we head towards the end of Q2 2022 and the mood across almost every global market is dark, Fine Wine has remained relatively  immune with continued solid performance.

Why is Fine Wine performing so well?

Wine’s position as both a diminishing asset, and one where capital appreciation comes over a long period of time as bottles age to maturity, means that price volatility is very low. The resulting resistance to macro-economic fluctuations, gives Fine Wine a serious advantage over both mainstream financial products and most other alternative investment asset classes.

The question many investors are now asking is where the opportunities lie for the remainder of 2022, what are the upcoming wine investment trends and which are the best wines to buy for investment.

“Exhibiting the balance and style of a vintage of the 1990s, but benefiting from all the agronomic progress and technical savoir faire of the present, the best 2021 reds are better than anyone could have dared to hope.”
William Kelley
Wine Advocate

Which wines should I invest in for 2022?

When deciding which wines to invest in, you’ll want to consider both your own goals for returns and the way each region’s unique offerings could help you achieve those.

Whether you’re drawn to legendary Old World wines from areas like Bordeaux and Burgundy, or the rising stars of the New World coming out of territories like the Maipo Valley in Chile or South Africa’s emerging wine region, Elim, there’s an option that will meet your personal criteria for risk and reward.

To help you decide, we’ve provided key details, and noted a few of our top wine investment picks for each region below:

Bordeaux 500 Index – 10.47% returns in 20211

  • Market mainstay: Bordeaux has long held the largest proportion of the global wine market – 40% trade share by value in 20212
  • Liquidity: As part of the largest global wine market, Bordeaux is easy to buy, sell, and trade
  • Stable: Bordeaux has the lowest annualised standard deviation of monthly returns at 3.77%2
  • Scarcity: Difficult growing conditions 2021 have led to below-average volumes of production – this year’s bottles could become especially valuable.

Our top picks:

  • Château Mouton Rothschild – An icon of fine wine. 95-96/100
  • Château Cheval Blanc – A Saint-Émilion institution. 95-97/100
  • Château Palmer – First Growth-quality wines by a top Super Second producer. 95-97/100
  • Château Figeac – A CultX favourite. Likely to be promoted to Premier Grand Cru Classé A status in 2022. 94-97/100
  • Château Les Carmes Haut-Brion – Top performer over the last decade. 94-97/100

Burgundy 150 Index – 31.01% returns in 20211

  • Solid long-term performance; sky-high recent returns: Overall, the Burgundy 150 index experienced a CAGR of 13.1% from 2016 – 2021.3 Top performing region so far in 2022 with a 22.3% jump as of 31 May.
  • Incredible returns at the top: Cult Wine Investment’s Iconic Burgundy producers saw  returns of 36.8% in 2021, and Tier 1 saw 19.9%.3
  • Great potential: Cult Wine Investment’s Tier 2 and Up-and-coming Burgundy saw returns of 3.8% and 7.9% respectively in 2021,3 but there may be high performers in these categories in 2022.

Our top picks:

  • Domaine Leflaive Batard-Montrachet Grand Cru – By an Iconic producer, already considered a top white wine of the vintage. 94/100
  • Sylvain Cathiard, Vosne Romanee Les Suchots Premier Cru – Exemplary red Burgundy from an Iconic producer, made from grapes considered Grand Cru quality. 94/100
  • Domaine du Comte Liger Belair, Vosne Romanee Aux Reignots Premier Cru – Red Burgundy by an Iconic producer. 97/100
  • Domaine Perrot-Minot Chambertin Grand Cru – Tier 1 red Burgundy already hailed as a classic. 95/100
  • Domaine Michel Lafarge, Volnay Les Caillerets Premier Cru – Red Burgundy by a top Tier 2 producer. 94/100
  • Charles Van Canneyt Corton-Charlemagne Grand Cru – An up-and-coming white Burgundy at the forefront of the ‘micro-negociant’ trend.

Champagne 50 Index – 41.49% returns in 20211

  • Steady growth: Champagne’s trade share value grew to around 10% recently – up from 2% in the early 2010s.4
  • Consistent demand: Since Q2 2018, Champagne has held 7.5-10% of the global fine wine market by value.4
  • A luxury institution: Champagne is known as the best of the best, not just in the wine market, but luxury and fashion at large. Top producers are household names, and have dedicated followings all over the world.
  • Stable market: Liv-ex’s Champagne 50 saw annualised volatility rates of 5.3% from 2016 to 2021 – alongside annualised returns of 10.9%.4

Our top picks:

  • Bollinger, La Grande Année – Prestige champagne produced only when the harvest reaches perfection
  • Taittinger, Comtes de Champagne – Luxury icon highly regarded in both its Blanc de Blancs and rosé iterations
  • Louis Roederer, Cristal – Mainstay of hip hop lyrics and high-end events, produced only in the years its Chardonnay and Pinot Noir grapes achieve perfect maturity
  • Moët & Chandon, Dom Perignon – Synonymous with luxury around the world, highly sought-after in both its Vintage and Vintage Rosé versions

And Grower Champagne producers to watch:

  • Jacques Selosse
  • Egly-Ouriet
  • Ulysse Collin
  • Agrapart

Rhone 100 Index – 14.42% returns in 20211

  • Low volatility: Rhone’s monthly values showed a standard deviation of 3.19% from September 2020 to September 2021 – lower than that of Champagne (4.59%) or Burgundy (8.19%).5
  • Relative value growth: When comparing Rhone Syrahs to Australian Syrahs of similar scores, the Rhones present a significantly more cost-effective opportunity.
  • Long-term potential: Rhones’ stability and consistent returns make them an attractive option for long-term investment.

Our picks for producers:

  • Jean-Louis Chave – Northern Rhône producer since 1481 whose Chave Cuvee Cathelin has achieved multiple 100/100 scores
  • Domaine Rene Rostaing – Northern Rhône producer well-known for showcasing the best the Côte Rôtie has to offer
  • Château Rayas – Southern Rhône institution founded in 1880, an icon of the Châteauneuf-du-Pape AOC
  • Vieux Télégraphe - Southern Rhône producer renowned for their Châteauneuf-du-Pape wines

Italy 100 Index – 13.87% returns in 20211

  • Sustained demand increases: Exempt from a tariff imposed on some European wines, Italian fine wine became very popular in the US in 2020. The surge held steady after the tariff was suspended in March 2021, and Italian wine claimed a 15.4% average monthly trade share in November 2021.6
  • Growth potential: Increasing global recognition and a reputation for quality have made Italian wine a popular way to diversify. Cult Wines’ Italy selections provided 63.4% returns over the past 5 years,6 and there’s still opportunity for growth.

Our picks:

  • Vietti Lazzarito 2016 – Barolo, 98/100
  • Tenuta San Guido Sassicaia 2018 – Super Tuscan, 97+/100
  • Gianni Brunelli Le Chiuse di Sotto 2016 – Brunello di Montalcino, 100/100 by a leading Italian reviewer

Rest of World 60 Index – 22.40% returns in 20211

  • Great relative value: Compared to traditional European wines of similar quality, wines from regions like California, Chile, and Argentina can offer great relative value – and potential for returns
  • Incredible growth: The Rest of World (Australia, Spain, Portugal) trade share grew from less than 1% to 5.9% from 2010 to 2020 and demand continues to increase7

Our picks:

  • Opus One 2018 – California, 98/100
  • Verite la joie 2018 – California, 98/100
  • Verite la muse 2018 – California, 100/100
  • Almaviva 2019 – Chile, 95+/100
  • Cheval des Andes – Argentina, 98/100
“Simply put, this number of back to back to back to back (to back) vintages has never occurred in living memory. Two years? Sure. Three years? Rarely. But four and likely five years? Never.”
Joe Czerwinski
Wine Advocate

Why invest in wine in 2022?

  • Strong 2021 performance: Fine wines, according to the Liv-ex 1000 index, gained 19.08% in  2021. Despite the difficult economic backdrop in 2022, the upward trend remains in place and is likely to continue.
  • Solid hedge against inflation: The returns on fine wine have outperformed inflation rates since 2006, and this gap is only widening.
  • Increasing demand, decreasing supply: Many French producers have already seen the effects of climate change, and produced lower volumes than in previous years. This scarcity is likely to continue – and drive even greater demand.

What to consider when investing in wine

When asking yourself what is the best wine to invest in, there are several criteria to take into account.

Your budget: Consider your needs and choose the bottles with the greatest potential for the returns you want.

Storage & cellaring: How will you store your wine over the long term? Proper wine storage and location influence quality and hence value and ease of sale. At Cult Wines, we store all wine in our own state-of-the-art London City Bond warehouse, which is one of the biggest wine hubs in the world.

Producer renown: Bottles from well-regarded producers with proven track records of quality vintages are always in demand. With dedicated audiences, these wines are generally easier to sell on – and for greater returns.

A global outlook: Diversify with a mix of established regions, like Bordeaux or Burgundy, and emerging areas, like Italy or Argentina. Choose an array of styles and varietals for a well-rounded portfolio that’ll see different benefits both long- and short-term.

Why invest in wine with CultX

The best investment bottles can be yours when you register for CultX. Source bottles from around the world with 24/7 access to an exclusive network of collectors, and get all the performance data you need to decide when to buy and sell.

CultX offers wine investment like never before. You have full control over your portfolio. Discover the alternative to alternative investing. Download the CultX app today.

**Past performance is not indicative of future success; the performance was calculated in GBP and will vary in other currencies. Any investment involves risk of partial or full loss of capital. The Cult Wine Investment Performance is a hypothetical tool. The results depicted here are not based on actual trading and do not account for the annual management fees that may be charged to a Cult Wines customer which ranges from 2.95% to 2.25% depending on the size of the portfolio, and there is no guarantee of similar performance with an investor’s particular portfolio.

1From January to June of 2022, the Liv-ex Burgundy 150* achieved returns of 23.90%. And in Q2 alone, the index saw 8.09% returns.
https://www.wineinvestment.com/learn/reports/fine-wine-investment-outlook-2022/
2https://www.wineinvestment.com/learn/reports/bordeaux-en-primeur-2021-report/
3https://www.wineinvestment.com/learn/reports/burgundy-report-2020/
4https://www.wineinvestment.com/learn/reports/champagne-investment-report2021/
5https://www.wineinvestment.com/learn/reports/rhone-investment-report-2021/
6https://www.wineinvestment.com/learn/reports/italy-investment-report-2021/
7https://www.wineinvestment.com/learn/reports/emerging-markets-and-us-report-2021/
*https://www.liv-ex.com/news-insights/indices/

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