Auction Index Flat in First Quarter Despite Lively Sales Activity
California and Burgundy collectibles make inroads in popularity
Are California wines back in fashion? Recent auction activity would suggest
so. As a category, California cults and blue chips fared best in the first
quarter, with a Wine Spectator Auction Index increase of 11 percent. After
years of Bordeaux dominating the headlines, California wines may be
making a stealth comeback.
As a whole, the Wine Spectator Auction Index, which tracks sales at fine
wine auctions in the United States, fell a modest 0.44 percent from 333.5
points to 332.05 points in the first quarter of 2012. By comparison, the S&P
500 and the Dow Jones, respectively, posted 12 percent and 8 percent
gains. Domestically, nine auctions comprising 8,897 lots went on the block
for an aggregate value of $27 million. That equates to an average price per
lot of $3,029, down from $3,819 during the same period last year. Average
percent-sold rates stood at a healthy 96 percent, off a fraction from 2011.
Once again, Hong Kong wine auctions eclipsed their U.S. counterparts
by a significant margin in the first quarter of 2012. Seven sales consisting
of 6,449 lots brought in a total of $42 million. The average price per lot in
Hong Kong amounted to $6,477—more than double the U.S. average—yet
down 24 percent from 2011. One explanation for the decline is that Hong
Kong collectors have become acutely more price sensitive than they were
a year ago. In consequence, aberrant prices for first-growth Bordeaux have
receded.
Classified Bordeaux sales in the U.S. fell 1 percent in value. The 2000
vintage was down 5 percent and 1990 was down 6 percent. The 1995
vintage rose 6 percent, spearheaded by Château Pétrus, which gained
21 percent to average $2,098 per bottle. Château Cos-d’Estournel 1989
advanced 51 percent to average $230 per bottle.
Elsewhere, Rhône wines fell 5 percent. Vintage Port was soft, falling 14
percent, largely because of a precipitous 38 percent decline in Taylor
Fladgate 1970, which dropped to $108 per bottle. Piedmontese listings
were down 8 percent, whereas Tuscan bottlings were up 7 percent.
Burgundy’s recent surge was evident at Christie’s Hong Kong auction of
the private cellar of famed winemaker Henry Jayer. The $8.5 million sale
total surpassed the high estimate by more than $5 million. The average
price per lot was a staggering $83,443. Top lot was a case of Vosne-
Romanée Cros Parantoux 1985 that sold for $265,147 (362 percent
above the index average). Other highlights included two magnums of
Richebourg 1985 that brought $218,357 (up 435 percent) and three bottles
of Richebourg 1978 that fetched $202,760 (up 27 percent).
Another world record was set at Acker Merrall & Condit’s New York auction
in March, where a jeroboam of DRC Romanée-Conti 1999 sold for a
hefty $73,200. The most expensive lot in the quarter was a case of the
celebrated 1945 Château Mouton-Rothschild, sold privately to a Hong
Kong buyer before Acker Merrall & Condit’s March 30 and 31 Hong Kong
auction for $217,949.
Zachys led domestic auction houses with $9,221,542 in first-quarter sales,
followed by Hart Davis Hart at $7,471,092 and Acker at $5,612,610. In
Hong Kong, Acker led the pack with $16,047,344, followed by Christie’s at
$8,511,288.00 and Sotheby’s at $8,248,506.
Jamie Ritchie, CEO and president of Sotheby’s Wine Americas & Asia,
feels prices will firm up in the next quarter. “The domestic market is
resurgent, bolstered by U.S. and South American buyers. I also think
collectors are going to be more aware of provenance and condition than
ever, which is a good thing.”
