By
CultX Team
Offered at £2,917* per 6 bottles (75cl) on CultX – awarded 100 points by The Wine Advocate (William Kelley).
Considering an investment in fine wine in 2024? Château Lafite Rothschild stands out as a prime candidate, and here's why it's topping the lists of savvy investors. The 2019 vintage, not only has it been awarded a perfect score, making it a 100 point wine, but it also emerges as the most affordable of its kind from Lafite to date. This affordability enhances its allure, positioning it as a highly coveted asset.
Additionally, Lafite's prominence in the wine trading market is undeniable; it ranks within the top 15% for its trading volume, boasting over 150 trades in the past year alone. Moreover, a 20% price correction over the last twelve months presents an appealing opportunity for investors. This adjustment signifies an optimal entry point, offering both value and the potential for significant appreciation.
The 2019 vintage of Lafite Rothschild boasts a top liquidity ranking of 5. This indicates it's among the top 15% traded wines on the wine exchange over the past 12 months. A high liquidity ranking is advantageous for investors as it implies ease of buying or selling the wine, ensuring that investments can be quickly liquidated if needed. Compared to other vintages, this high liquidity suggests strong market demand and interest.
With a Fair Value Grade of 7, the 2019 vintage of Lafite Rothschild is considered undervalued relative to its fair market price (£6,731) trading at a 13.4% discount. This grading suggests that, based on its current market price versus its intrinsic value, there is potential for price appreciation.
The 2019 vintage has received exemplary critic scores, including a perfect 100 from Wine Advocate and a 98 from Vinous. These scores are particularly impressive, highlighting the vintage's exceptional quality. A perfect score from Wine Advocate is a rare accolade, underscoring the 2019 vintage's standout nature among Lafite Rothschild vintages and potentially indicating its superior investment value.
Year-to-date (YTD) return: -3.2%, indicating a slight decline in value since the beginning of the year.
1-year return: -21.4%, showing a significant decrease over the last year.
3-year return: +12.6%, demonstrating a strong performance over a longer period, though this metric is more speculative given the wine's recent release.
Current market price: Offered on the CultX platform from £2,917* per six (75cl), the 2019 Lafite Rothschild is positioned as a blue-chip investment. Its high critic scores, combined with its price, underscore its desirability and potential for appreciation.
The Lafite Rothschild 2019 presents a compelling investment opportunity, characterized by its high liquidity ranking, indicating strong market demand. The wine's current undervaluation, as indicated by its discount to its fair market value, suggests room for price appreciation, making it an attractive buy. Critic scores are outstanding, with a perfect score from Wine Advocate, making it a standout vintage that could command higher prices in the future.
The recent one-year drop in value for Lafite Rothschild 2019 appears to be a part of a broader market correction rather than a reflection of diminished intrinsic value. And the recent stabilisation of the price, suggests the price correction is over. Despite this decline, the wine retains its exceptional quality, as evidenced by its high critic scores and historical performance. This correction presents an opportunity for investors to enter the market at an attractive price point, potentially yielding outsized returns in the long term.
Given its current price, exceptional critic scores, liquidity, and the volume of trading, the Lafite Rothschild 2019 is positioned as a blue-chip investment with strong potential for appreciation, particularly appealing to collectors and investors seeking to add a distinguished and potentially undervalued wine to their portfolio.
*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.
*Source: Data as of 10 April 2024 from CultX Market Price Data powered by Wine-Searcher. Offer available while stocks last, excludes VAT and fees. Cult Wines Indices are an objective measure of the global fine wine market based on Wine-Searcher pricing data and rebalanced annually based on strict liquidity criteria.
A Burgundy-based winery that has gained worldwide acclaim for its innovative approach to winemaking and a reputation for producing some of the most sought-after Chardonnays in the region.
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