Lafite sky-high prices at Hong Kong auction or ‘China price’

Once again the strong interest in Lafite from Chinese buyers has been confirmed at Sotheby’s auction taking place in Hong Kong on October, 29th.

Asian bidders paid “strastopheric prices” for prized bottles sent directly from Chateau Lafite Rothschild’s cellar in a Sotheby’s auction in Hong Kong.

This month three bottles of 1869 Lafite Rothschild sold at Sotheby’s auction set new record to become the most epxensive wine sold at auction for £145,704 or US$233,972* each.

Decanter confirmed that all 284 lots for sale on that day – 190 of them Lafite - went to Asian buyers. The sales grossed US$8,440,137 or £5,255,862; far beyond the pre-sale estimate for the entire catalogue, US$1,619,110 - 2,507,944 or £1,008,256 - 1,561,723.

This is what the Financial Times recently called the “China price”. Chinese buyers seem to be prepared to pay litterally any price to enjoy a glass of wine of the prestigious Lafite label.

When auction houses don’t go to China, China goes to auction houses. Indeed, even outside Hong Kong, even though if the trend is less important, Asian buyers still stand out in auctions with the “China price”. At an auction taking place in New York this November, an Asian buyer bought 10 lots of Mouton Rothschild 2000 for US$22,990 (US$15,000 estimates) and a Lafite superlot of 1996-2003 cases for US$120,000 (US$70,000 estimates).

One may agree or disagree with Asian buyers but this is for sure an great opportunity for wine investors holding these sought-after stocks in their portfolio to enjoy potentially additional profit returns.

*1 US$ = 0.622687 GB£; 1 GB£ = 1.60594 US$

Source: Decanter.com, Financial Times, Boltons Wine Investment, November 2010