Subscriber login Close [x]
remember me
You are not logged in.


Published:  23 July, 2008

By Jim Budd

Langton's, Australia's leading fine wine auctioneer, has warned all its clients about unscrupulous wine investment brokers who are blatantly misguiding their clients with unrealistic market valuations and expectations'. Langton's alleges that despite electronic and published retail and secondary wine market data, ill-informed buyers are being seduced by overstated media reports and over-optimistic - and sometimes hard - sales pitches. A wine investor (one of the many who have contacted Langton's) purchased 323 bottles, comprising three collections/portfolios for A$32,400 in June and July 2002. This price included 5% brokerage fee and storage. The investor received "Portfolio Evaluations" in April 2003 and September 2003, stating that market value was A$33,083 and A$34,493 respectively. Regardless of an accompanying disclaimer, these evaluations are grossly exaggerated and self-fulfilling. The investor will expect a return of approximately half the original purchase price.' Growing interest in top Australian wines, such as Grange and Hill of Grace, has seen a number of wine investment brokers set up in Australia.