Navigating a wine auction as a beginner can feel like stepping into uncharted territory. However, with the right tips and tricks, you’ll be building your collection like a pro.
Here’s everything you need to know about building a profitable wine collection when purchasing at auction:
Why Buy Wine At Auction?
Purchasing wines at auction is a great way for wine collectors to expand their growing wine collection. Auctions feature rare and limited-edition bottles that are not readily available on the primary market, providing collectors with the opportunity to acquire unique and hard-to-find wines that enhance their collections. While wine auctions are renowned for hosting collections from top producers and prestigious wine regions, they also feature a diverse selection of wines from various regions, producers, styles and price points, usually from all over the world. This allows collectors to diversify their collections.
Auctions offer a transparent process for potential buyers. This ensures that you can purchase with confidence through the added security of the curation, speciality knowledge, provenance and storage conditions of the wines the auction house puts on sale. Additionally, the value of certain rare and collectable wines is appreciated over time, and buying at auctions can prove to be an excellent investment. Ultimately, when searching for the finest wines, auctions provide buyers with a chance to nurture their passion for wine in an exciting way.
While building a profitable wine collection is not as straightforward as purchasing a bottle of rosé in-store, it does allow you to reap the rewards when done correctly.
Tips for Building a Wine Collection
How much are you willing to spend?
Establish a budget and how much you are willing to spend on your growing wine collection. Your budget should not only include how much you are willing to spend on the auction floor but should also include additional costs such as proper wine storage, insurance and expert consultation fees. Make sure you are ready for these additional costs that you may incur.
Check the packaging
Packaging of wine can significantly influence its longevity and overall quality. For example, cork closures are traditional and allow for a small amount of oxygen exchange, which can be beneficial during the ageing process. However, the choice of cork will significantly influence the taste of the wine. Wine bottles with a longer natural cork will taste and age better than those with a shorter or synthetic cork, as these types of corks often prevent oxygen from entering.
Keep track of your collection
Maintain a detailed inventory, documenting key details like vineyard, vintage, and purchase price. Whether using specialised software or a personalised system, keeping accurate records allows you to monitor the ageing potential of each bottle, ensuring they are opened at their peak. Regular updates to your collection records, including new acquisitions and sales, provide a real-time snapshot of your portfolio. This organised approach not only enhances management but empowers you to make informed decisions about potential sales, reinvestments, or adjustments to your collection strategy based on evolving market conditions.
Diversify your collection
If you’re a new collector, it’s important to create a balanced mix of prices, young reds and whites, styles and different wine regions. Diversification safeguards against the impact of specific vintage variations, ensuring that your collection remains resilient over time. It also allows you to cater to varied tastes, occasions, and evolving trends, making your wine collection an ever-evolving and exciting journey through the world of viniculture.
Focus on Provenance
Prioritise wines with well-documented provenance and storage history. Bottles with a clear history of proper storage conditions are likely to be in better condition and more valuable. Once purchased, make sure you catalogue all the original documents - purchase receipts, auction catalogues, seller details, etc. It’s also a good idea to take pictures and make notes of the vintage year and condition of the bottle when you purchased it.
What you should know as a novice wine collector
The auction floor offers a transparent process that makes acquiring details from the auction house or auctioneer an easy option. Therefore, novice collectors should be wary of an auction house or seller who is withholding critical information about the wine’s source, condition or authenticity. Don’t be afraid to contact the auctioneer directly and ask questions.
Understanding the Conditions of Sale and any applicable regulations associated with the purchase should be prioritised. Most importantly, embrace the learning process, ask experienced colletors questions, and enjoy the experience and thrill of purchasing each bottle.
